Retired homeowners earning more from their houses
Retired homeowners have each earned more than £2,400 a month from their houses in the past year, evidence from Key Retirement suggests.
Total property wealth owned by over-65s who have paid off their mortgages is now worth £1.054tn, with average retired homeowner making £29,010 in the year to May.
Despite the recent slowdown in the housing market, more than £127bn has been added to the property wealth of the UK’s homeowners aged over-65 in the past year.
Key’s ‘Pensioner Property Equity Index’ shows only over-65s in London and Scotland saw the value of their total property wealth drop in the past year.
Retired homeowners in East Anglia saw the biggest growth on the other hand and are now £56,138 better off.
Dean Mirfin, technical director at Key Retirement, said: “Pensioners who have paid off mortgages have been able to rely on consistent tax-free returns from their homes, no matter what the impact of historically low interest rates and market uncertainty has been.
“Despite what happens in the property market homeowners will always have a major asset that can make a major contribution to their retirement standard of living.”