Pensioners earning record £3,500 a month from their homes

Total property wealth owned by over-65s who have paid off their mortgages grew to a record £1.101 trillion in August.

More than £47.2 billion has been added to the property wealth of the UK’s over-65 homeowners over the three months as the property market recovered across all regions.

Since Key started analysing over-65s housing wealth in 2010, retired homeowners have seen growth of 41% or £321 billion which is worth around £68,500 on average for every over-65 homeowner.

Key’s Pensioner Property Equity Index shows the biggest individual gains were in London where over-65s in London made nearly £17,000 each from their properties but pensioners in East Anglia, Scotland, the South West and the North East also saw double-digit gains.

Dean Mirfin, Chief Product Officer at Key Retirement, said: “The strength of the housing market over the three months has significantly boosted property wealth for pensioners making as much as £3,500 a month. Prices may not continue to grow as fast but pensioners who have paid off mortgages can still rely on tax-free returns no matter what happens in the short and medium term.

"The average homeowner is releasing through equity release the equivalent of the gains made since 2010 and property wealth is having a dramatic effect on the standards of retirement living for many thousands across the UK.”