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Over-65s Earn £1,000 a Month From Their Homes

22 March 2019

OVER-65s EARN £1,000 A MONTH FROM THEIR HOMES
Retired homeowners’ property wealth increases by £28 billion in six months
Over-65s property wealth hits new record high of £1.118 trillion, Key Pensioner Property Index shows
 
Mortgage free retired homeowners saw their homes increase by nearly £1,000 a month over the past six months despite housing market uncertainty, analysis* from UK’s leading independent equity release adviser Key  shows.
 
Total property wealth owned by over-65s who are mortgage free is at a new record high of £1.118 trillion with the average homeowners seeing the value of their homes grow by £28 billion, Key’s Pensioner Property Equity Index reveals.
 
Across Great Britain average gains for the over 65s in property wealth are worth £5,998 each with all areas of the country benefiting in the past six months.  Homeowners in Yorkshire and Humberside (+£8,607) have seen the biggest increases followed by those in Wales (+£7,875) and the North West (+£7,546) have also done better than average (+£5,889).
 
Retired, mortgage free homeowners in London (+£1,655) have the least to celebrate and have only just matched over six months the same amount over-65s in Yorkshire & Humberside have achieved in a month (+£1,435).  Key’s index demonstrates the long-term investment success of home ownership and the value of housing wealth for retirement planning.
 
Since Key started analysing the un-mortgaged property wealth of the over-65s in 2010 retired homeowners have seen growth of nearly £340 billion in property wealth – equivalent to an increase of 43%.
 
 
 
Will Hale, CEO at Key said: Retired homeowners who have paid off their mortgage have made on average nearly £1,000 from their homes per month with over-65s in some parts of the country experiencing even bigger gains.  Those in Yorkshire and Humberside have seen the biggest increases while those in London have seen more modest gains.
 
“The numbers are fascinating but the basic fact is that no matter what happens year to year to house prices many over-65s will have considerable property wealth which can transform their standard of living in retirement and help family members. 
 
“Increasingly equity release customers are able to make substantial gifts to family members including their adult children or even grandchildren with money being used to clear debts, fund university fees and pay for house deposits and weddings. Customers can also use the money to ‘age-proof’ their own homes and preserve wealth for the family.
 
“While equity release is not right for everyone, it is clear that if your home is your largest asset in retirement, you should take some time to think through when and if you might need to access this wealth. Speaking to a specialist adviser is key to making smart choices.”
 
The table below shows the detailed picture across Great Britain with all areas seeing growth.
 


Region
Average change in value of home equity for homeowners aged 65+ (past six months) Combined change in value of home equity for homeowners aged 65+ (past six months)
South East Up £6,103 +£4.003 billion
London Up £1,655 +£609.39 million
South West Up £6,328 +£2.003 billion
North West Up £7,546 +£5.063 billion
East Anglia Up £3,133 +£1.478 billion
East Midlands Up £7,527 +£3.129 billion
West Midlands Up £7,376 +£2.643 billion
Yorks/Humbs Up £8,607 +£2.483 billion
Scotland Up £5,499 +£1.550 billion
Wales Up £7,875 +£2.083 billion
North East Up £4,103 +£1.128 billion
GREAT BRITAIN Up £5,998 +£28.139 billion
 
 
The table below shows over-65s in the North West are most likely to own outright with 671,000 having paid off mortgages compared with 656,000 in the South East. However nearly a fifth of all property wealth held by retired homeowners is in the South East.
 
 

Region
Estimated property equity in homes owned outright by people aged 65+ Estimated percentage of total value of property equity belonging to people aged 65+ Number of households in the region owned outright by people aged 65+
South East £214.370 billion 19.16% 656,000
London £173.340 billion 15.49% 366,000
South West £160.514 billion 14.35% 626,600
East Anglia £139.026billion 12.42% 472,000
North West £110.719 billion 9.89% 671,000
East Midlands £82.787 billion 7.40% 431,200
West Midlands £70.272 billion 6.28% 358,400
Yorks/Humbs £47.289 billion 4.23% 288,600
Scotland £42.725 billion 3.82% 282,000
Wales £42.567 billion 3.80% 264,600
North East £35.333 billion 3.16% 275,000
GREAT BRITAIN £1.118 trillion   4,691,400
 
 
 Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting https://www.keyadvice.co.uk/equity-release/is-it-right-for-me
 
 
ENDS
 
Notes to Editors
 
* Key’s Pensioner Property Equity Index tracks the amount of equity held in property by people over 65 years old in Great Britain. Figures are based on analysis of data from the ONS Family Spending Report (2014), the UK House Price Index, Registers of Scotland House Price Statistics and ICM (2014) and Key’s UK Equity Release Market Monitor.
 
Lee Blackwell
Director of Public Relations and Public Affairs
Key Retirement Group
07384511140
E-mail: [email protected]
 
Rachel Mann
Key Retirement Group
01772 508322
E-mail: [email protected]
 
Citigate Dewe Rogerson
Katie Ormrod
0207 282 1023
E-mail: [email protected]
 
 
About Key:
With almost 20-years’ worth of experience helping people to access the equity in their homes, Key is the UK’s leading independent adviser for equity release and later life lending.   Based in Preston, over 1 million people have come to Key for help with financial planning in retirement and as a company, we are proudly customer-centric with a commitment to providing quality face-to-face advice.

Page last updated: Wednesday 05 June 2019