Pensioners see house price boost
Economic Lifestyle’s pensioners’ property equity release study has revealed the recent housing market upturn has boosted the value of British pensioners’ homes at a rate of £29 a day per household.
Overall the total value of UK pensioners’ homes rose to £1.08 trillion with 6.3 million retired homeowners gaining approximately £2,680 each over the past three months in increased property value.
Increases in property prices in London and the North East saw pensioners gain £8,977 and £8,384 each on the average value of their properties respectively. Properties in Wales increased to £5,440 per retired homeowner over the past three months collectively increasing in value to over £4.8 billion.
Mark Neal, managing director of Economic Lifestyle, welcomed the findings with an element of caution: “For most pensioners their property represents their most substantial financial asset. However, living in a valuable house while struggling to get by on a pension does not make you feel wealthy.
“As increasing numbers look to convert some of this wealth into cash through downsizing or equity release schemes, the news of an increase in property values should be welcomed.”
However, not all pensioners saw house price rise in the three months to 30 September. Retired homeowners in the South West and East Midlands saw home values fall as their areas recorded a 1.4 per cent drop in property prices.
Scottish pensioners collectively lost £486 million in the value of their homes during the third quarter of 2005. But since January house prices in Scotland have seen a total rise in value of nearly £4 billion.