Retired homeowners see property value rise £800 a month
Retired homeowners made £45.7bn on their homes, according to Key.
The equity release adviser said that despite housing market worries, total property wealth owned by over-65s who have paid off their mortgages is near a record high of more than £1.1trn.
Average homeowners have made around £812 every month since May last year.
Over-65s in the East Midlands have been the biggest winners with their property wealth climbing by nearly £1,170 a month but pensioners in West Midlands (£1,002), Scotland (£989) and East Anglia (£973) have all seen significant gains and no areas have recorded price falls.
The long-term investment success of home ownership is also clear. Since Key started analysing over-65s housing wealth in 2010, retired homeowners have seen growth of 41%, or £320bn.
Dean Mirfin, chief product officer at the business, said: “Retired homeowners continue to see the benefits of property investment with average gains of £9,741 in the past year. Whatever the short-term changes in house prices, many over-65s have considerable property wealth which can make a huge contribution not only to their standard of living in retirement but also the financial wellbeing of family members.
“We are seeing an increasing number of customers choosing to gift some or all of the proceeds of equity release to help loved ones in a variety of ways, for some this is helping children or grandchildren take their first step on the housing ladder, for others to pay for expenses such as weddings.”
Related: See YourMoney.com’s A guide to equity release and Downsize vs equity release: what’s the right decision for you? for more information.