Over 65 pensioner property wealth hits £807 billion in Britain

4th June 2014

The Over-65s have earned £1,346 in past three months from their homes the Key Retirement Solutions Pensioner Property Index shows.

Retired homeowners have seen their property wealth grow by more than £6.3 billion in the past three months as the housing market has continued to grow, new research* from leading over-55s financial specialist Key Retirement Solutions shows.

Pensioners who own their homes outright have earned an average of £1,346 each from their houses and their total property wealth is now at its highest level since Key Retirement Solutions started monitoring the housing wealth of the over-65s in March 2010.

Its Pensioner Property Equity Index shows over-65 homeowners now own property wealth of £807.249 billion outright as house prices across most of the UK rose.

Key Retirement Solutions, which is an equity release specialist shows that £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.

Retired homeowners in London were the biggest winners gaining nearly £10,700 on average each in the past three months while retired homeowners in Eastern England are more than £4,290 better off and pensioners in the South West are £2,283 better off.

But there were sharp falls in some areas – 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.

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 £151.7 billion while in the South East pensioners own £145 billion 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.

Dean Mirfin, group director at Key Retirement Solutions (www.keyrs.co.uk), says: “Pensioner property wealth is at a new record high of £807 billion as the housing market continues to grow, and average gains of more than £1,346 in just three months highlights that property wealth should be a major part of retirement income planning.”

The table below shows the 11 areas of Great Britain monitored by Key Retirement Solutions’ index with eight seeing gains.

Region Average change in value of home equity for homeowners aged 65+ (between February index and May index) Combined change in value of home equity for homeowners aged 65+ (between February and May index)
London +£10,698 +£3.915 billion
South East +£680 +£446.080 million
South West +£2,283 +£1.430 billion
North West -£966 -£648.186 million
East +£4,290 +£2.024 billion
East Midlands +£445 +£191.884 million
West Midlands +£1,732 +£620.748 million
Scotland -£3,898 -£1,099 billion
Yorks/Humbs +£981 +£283.116 million
Wales -£4,993 -£1.321 billion
North East +£1,717 +£472.175 million
GREAT BRITAIN +£1,346 +£6.316 billion

 

The table below shows over-65 homeowners in the North West are most likely to own their home outright – Key Retirement’s analysis shows 671,000 own their homes without mortgages compared with 656,000 in the South East.

Region Estimated property equity in homes owned outright by people aged 65+ (May 2014) Estimated percentage of total value of property equity belonging to people aged 65+ (May 2014) Number of households in the region owned outright by people aged 65+
London £151.703 billion 18.79% 366,000
South East £145.099 billion 17.97% 656,000
South West £112.202 billion 13.9% 626,600
East £87.310 billion 10.81% 472,000
North West £73.167 billion 9.06% 671,100
East Midlands £54.927 billion 6.8% 431,200
West Midlands £47.857 billion 5.93% 358,400
Scotland £44.111 billion 5.46% 282,000
Yorks/Humbs £33.764 billion 4.18% 288,600
Wales £29.972 billion 3.71% 264,600
North East £27.311 billion 3.38% 275,000
GREAT BRITAIN £807.429 billion 4,691,500

 

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