Retired homeowners saw their property wealth increase by more than £1,000 in the past year according to new research from Key Retirement.
Total property wealth owned by over-65s who have paid off mortgages is valued at just over £1tn, which is a year-on-year increase of £5.4bn.
Key’s Pensioner Property Equity Index showed that the mortgage-free property wealth for this age growth has grown by 41% since the report began in 2010.
Retired homeowners in the West Midlands are nearly £7,500 better off than this time last year, with those in Wales and the North West also recording strong gains.
Will Hale, chief executive at Key, said: “The ongoing uncertainty in the property market and the economy as a whole is having an impact on house prices but overall retired homeowners have still gained an average of more than £1,000 from their houses in the past year.
“Some parts of the country have experienced even bigger gains with the West Midlands, North West and Wales continuing to perform strongly. The basic fact is that no matter what happens month to month to house prices millions of over-65s will continue to hold considerable property wealth which can transform their standard of living in retirement and enable them to address a wide range of financial issues.”
Despite the gains in some UK regions, retired mortgage-free homeowners in London have lost more than £1,000 a month in the past year with those in the South East and East Anglia also seeing property wealth values drop.
Those in London and the South East still account for more than a third (34%) of all property wealth held by retired homeowners despite these declines.
Hale continued: “Increasingly equity release customers are able to help their adult children or even grandchildren to pay for house deposits while also being able to sort out their own finances whether it is clearing debts or even paying off mortgages.
“Equity release is not right for everyone but it is clear that if your home is your largest asset you should take some time to assess what role property wealth can play in retirement planning. Speaking to a specialist adviser is key to making smart choices.”