Survey: Retired homeowners own property worth £807 billion
Published by Brian Church for 24dash.com in Housing
Mendip Housing tenants
If you think your retired neighbours are comfortably off, think again. They could be stonking rich.
Retired homeowners now own property worth £807 billion, according to a new survey. Their total property wealth increased by more than £6.3 billion in the past three months alone – the equivalent of £1,346 each – research from over-55s financial specialist Key Retirement Solutions shows.
Retired homeowners in London gained nearly £10,700 on average each in the past three months. Retired homeowners in Eastern England are more than £4,290 better off and pensioners in the South West gained £2,283. However, over-65 homeowners in Wales saw their average property wealth fall by nearly £5,000 in the three months while Scottish pensioners lost nearly £3,900. Retired homeowners in the North West lost £966.
More than 70% of pensioner property wealth is concentrated in London, the South East, the South West, the East of England and the North West.
Total property wealth is now at its highest level since Key Retirement Solutions started monitoring the housing wealth of the over-65s, albeit from only 2010, for its Pensioner Property Equity Index.
The growth in property prices is helping to drive the equity release market which enables homeowners to release money from their houses – Key Retirement Solutions figures show £339.8 million was released in the first three months of this year with the average customer taking more than £61,230 from their home.
Key Retirement’s figures show more than 36.7% of pensioner property equity is owned by over-65s in London and the South East. In London over-65s own property without any mortgages worth £151.7bn while in the South East pensioners own £145bn of property outright. More than 70% of pensioner property wealth is concentrated in London, the South East, the South West, the East of England and the North West.
Group director Dean Mirfin said: “Even homeowners in areas where prices have fallen still have considerable property wealth considering they own their homes outright and will have seen strong gains. Independent advice is crucial, however, when considering how to use property wealth to improve retirement income whether people are downsizing to a new home or releasing equity from their current home.”