Opening Hours

Open until 8:00pm today

Opening Hours

  • Monday - Thursday

    9:00am - 8:00pm

  • Friday

    9:00am - 5:30pm

  • Saturday

    9:00am - 5:00pm

  • Sunday

    Closed All Day

Our Address

Key, Baines House,

4 Midgery Court, Fulwood,

Preston, PR2 9ZH

UK FREEPHONE

0808 156 2697

Pensioners Own Property Worth £774.2 Billion

19 August 2013

Average retired over-65 homeowner gains £1,120 in three months on their house, Key Retirement Solutions Pensioner Property Index shows

 

Retired homeowners have total property wealth owned outright of £774.22 billion as the housing market continues to grow, new research* from leading over-55s specialist adviser Key Retirement Solutions shows.

 

Homeowners aged 65-plus gained a total of £5.262 billion - equivalent to an average £1,120 each, Key Retirement Solutions' Pensioner Property Equity Index found.

 

The rise in property equity owned by over-65s continues the housing market recovery and increases property wealth on the £771 billion achieved in August last year.

 

But the national increase masked major differences across the country with the over-65s in London continuing to benefit with average gains of £9,362 in the past three months taking their total gains in the past year to nearly £20,000.

 

In contrast retired homeowners in the North East of England are £5,316 down on a year ago while many other areas have stood still on a year ago or fallen slightly.

 

In the past three months six of the 11 regions monitored by Key Retirement Solutions recorded increases with the biggest falls in Scotland and Yorkshire & Humberside. Scottish over-65s lost an average £1,708 and in Yorkshire & Humberside they are £1,663 worse off.
 
Despite house market volatility Key Retirement's figures show nearly 36% 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 £140.52 billion while in the South East pensioners own £137.75 billion of property without mortgages. Nearly 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 (www.keyadvice.co.uk), said: "The continuing rise in pensioner property equity shows the housing market recovery is taking hold and there are real bright spots with pensioners gaining an average of more than £9,362 from their homes.

 

"When other sources of retirement income are under pressure with the Bank of England ruling out rate rises until 2016 at the earliest it is encouraging that all  pensioner homeowners are literally sitting on a major asset.
    
"Whatever the trend in the housing market, even for those regions experiencing falls, over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages on homes they may have bought more than 25 years ago.

 

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





































































 
 

Region

Average change in value of home equity for homeowners aged 65+ (between April index and July index)  

Combined change in value of home equity for homeowners aged 65+ (between April index and July index)

London +£9,362 +£3.426 billion
 

South East

 

+£1,506

 

+£987.94 million

 

South West

 

+£2,042

 

+£1.28 billion

 

North West

 

+£1,166

 

+£782.38 million

 

East

 

-£687

 

-£324.26 million

 

East Midlands

 

+£25

+£10.78 million
 

West Midlands

 

-£216

-£77.41 million
 

Scotland

 

-£1,708

-£481.65 million
 

Yorks & H'side

 

-£1,663

 

-£479.94 million

 

Wales

 

+£1,211

 

+£320.42 million

 

North East

 

-£660

 

-£181.5 million

 

Great Britain

+£1,120 +£5.262 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. However higher property prices in London means over-65 homeowners there have the most property wealth.


















































































 
 

Region

Estimated property equity in homes owned outright by people aged 65+ (end July 2013)  

Estimated percentage of total value of property equity belonging to people aged 65+ (end July 2013)

 

Number of households in the region owned outright by people aged 65+

London £140.52 billion 18.15%  

366,000

 

South East

 

£137.75 billion

 

17.79%

656,000
 

South West

£107.87 billion  

13.93%

 

626,000

 

East

 

£82.16 billion

 

10.61%

 

472,000

 

North West

£72.27 billion  

9.33%

 

671,100

 

East Midlands

 

£52.96 billion

 

6.84%

 

431,200

 

West Midlands

£46.61 billion 6.02%  

358,400

 

Scotland

£43.17 billion  

5.59%

 

282,000

 

Yorks & H'side

 

£33.34 billion

 

4.31%

 

288,600

 

Wales

£31.06 billion  

4.01%

264,600
 

North East

 

£26.5 billion

3.42%  

275,000

Great Britain  

£774.22 billion

   

4,691,500

 

Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 531 6010 or by clicking here.