Property has proved lucrative for the over-65s, with retired homeowners seeing an increase of £5.445 billion over the past 12 months, equating to a £1,000 increase in their property wealth , research from Key has shown.
According to the equity release adviser, total property wealth owned by over-65s who have paid off their mortgage totaled £1,096 trillion, down from £1,1118 trillion recorded in February. However, on an annual basis, retired homeowners saw an increase of £5.445 billion.
Since 2010, retired homeowners have experienced 41% growth – more than £316 billion – earning them gains of £67,000 in less than a decade.
The biggest winners over the past year have been those living in the West Midlands, who are nearly £7,500 better off than 12 months ago, followed by Wales (£6,560) and the North West (£6,297). At the other end of the scale, retired homeowners in London have lost more than £1,000 a month in the past year, while over-65s in the South East and East Anglia have also seen property wealth values drop.
Will Hale, CEO, Key, said: “The ongoing uncertainty in the property market and the economy as a whole is having an impact on house prices but overall retired homeowners have still gained an average of more than £1,000 from their houses in the past year.
“The basic fact is that no matter what happens month to month to house prices, millions of over-65s will continue to hold considerable property wealth which can transform their standard of living in retirement and enable them to address a wide range of financial issues.”
Hale said equity release customers are increasingly able to help their children or grandchildren get on the housing ladder, while also being able to sort out their own finances.
He added: “Equity release is not right for everyone but it is clear that if your home is your largest asset you should take some time to assess what role property wealth can play in retirement planning.”
