Pensioners own property worth £756.6bn

Retired homeowners have total property wealth owned outright of £756.6 billion despite continuing housing market volatility, new research* from leading independent equity release adviser Key Retirement Solutions shows.

Homeowners aged 65-plus have gained a total of £4.4 billion in the past three months – equivalent to around £962 each – as the housing market showed signs of revival, Key Retirement Solutions’ Pensioner Property Equity Index shows.

Whilst overall housing wealth has increased there is a growing divide between winners and losers with six regions showing increases and five suffering declines.

Over-65 homeowners in Scotland were by far the biggest winners seeing average gains of £10,070. Over-65s in London and the East of England also benefited with gains of £3,867 and £3,548.

However over-65 homeowners in the North West, East Midlands and Yorkshire & Humberside suffered average losses of £1,420, £1,203 and £1,111 respectively.

Key Retirement’s figures show a third of property equity is owned by pensioners in London and the South East of England – in London over-65s own property without any mortgages worth £127.2 billion while in the South East pensioners own £122.24 billion of property without mortgages.

Dean Mirfin, Group Director at Key Retirement Solutions, said:

“It is difficult to forecast exactly where the housing market is going and it remains volatile. While the gains of the past three months are welcome the picture is not at all clear and, as the figures reveal, the recovery is very patchy.
                                                                                                            
“However the over-65s own considerable property wealth which still represents a massive investment success as they no longer have mortgages and will in most cases have bought more than 25 years ago.

“The equity release market is seeing a rise in the number of plans sold with more pensioners opting for drawdown products which enable them to benefit from lower borrowing costs today, allowing for increased flexibility to access further funds over time as and when required.”