Despite housing market worries, retired homeowners who are mortgage-free have gained £45.7 billion in property wealth in the year to May, says new data.
For the average retired homeowner who has paid off their mortgage, this equates to prospective gains of £812 per month – and a total of property wealth of £1.1 trillion.
Reporting on the pensioner property equity index from Key, Mortgage Strategy magazine says that of the over-65s who own their own homes, those living in the East Midlands saw their property values grow the most – with the average yearly change in value of equity coming in at over £14,000.
The West Midlands followed this at £12,029, and then Scotland, at £11,865. The index also reported that no regions have seen a fall in property wealth, so it’s highly likely that just about everyone’s seen the value of their home increase.
The data has been collated since 2010 and in that time, it has recorded growth of £320 billion – equivalent to a 41% rise.
Commenting on the study, a spokesman from Key said: “Whatever the short-term changes in house prices, many over-65s have considerable property wealth which can make a huge contribution not only to their standard of living in retirement but also the financial wellbeing of family members.”