Pensioner properties worth £774.2 billion!

PENSIONERS OWN PROPERTY WORTH £774.2 BILLION

The 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 takes pensioner property wealth back above the £771 billion achieved in August 2012.

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 Retirement Solutions (www.keyrs.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/Humbs

-£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%

626,600

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/Humbs

£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 visiting https://www.keyrs.co.uk/free-guide.

 * Key Retirement Solutions Equity Release 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 (2009), the Land Registry House Price Index, Registers of Scotland House Price Statistics and ICM (2010), Key Retirement Solutions UK Equity Release Market Monitor November 2011.

About Key Retirement Solutions

Founded in 1998 Key Retirement Solutions is the leading over 55's specialist adviser. Key Retirement Solutions is a limited company registered in England No 2457440 with its Head Office at Key Retirement Solutions, Baines House, Midgery Court, Pittman Way, Fulwood, Preston PR2 9ZH. Key Retirement Solutions is authorised and regulated by the Financial Services Authority. 

Retirement Matters note:  this article published on website August 2013; please take independent advice before proceeding with any scheme or paying any fee which may be requested  
Content credited to: Key Retirement Solutions - August 2013

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