Wealth boost for mortgage-free pensioners

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retirement-planning

Retired homeowners gained around £1,300 a month on average in the past three months as the housing market boom boosted their property wealth, new research from Key Retirement Solutions shows.

Its Pensioner Property Equity Index shows over-65 homeowners now have property wealth of £792.75 billion – an increase of more than £18.532 billion in the past three months as house prices across almost all of the country rose.

The average total gain over the three months for pensioners who have paid off mortgages was £3,950, Key Retirement Solutions’ analysis shows.

Pensioner property wealth is now at its highest level since Key Retirement Solutions started its Pensioner Property Equity Index in March 2010.

However there are still losers – over-65 homeowners in Wales saw their average property wealth fall by £2,796 over the three months.

Every other region saw gains with over-65s in London an average £9,532 better off their total gains over the past 15 months to nearly £30,000. Pensioner homeowners in the South East were £8,095 better off and in the East of England they gained £5,951.

Key Retirement’s figures show more than 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 £144 billion while in the South East pensioners own £143 billion of property without mortgages. More than 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, said: “The housing market boom is a mixed blessing for homebuyers but for pensioners who do not have mortgages it genuinely boosts their wealth.

“The over-65s in London have seen gains of nearly £30,000 in 15 months and across most of the country property wealth is rising which is a genuine positive when other sources of retirement income are under pressure.

“0ver-65s own considerable property wealth which should be considered as factor when planning retirement income whether it is downsizing or releasing equity.”

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