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Retirees’ property assets grow

Retirees’ property assets grow

Category: Retirement

Updated: 20/06/2013
First Published: 05/06/2013

MONEYFACTS ARCHIVE
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Latest research has found retirees hold a combined property equity of £768.95 billion, as the UK housing market showed continued signs of growth over the first three months of 2013.

Homeowners aged 65 and over gained an average of £251 individually between January and April this year, working out at £1.178 billion overall.

Around 36% of property wealth is owned by over 65s in the South East of England and the London area, with combined property values worth £136.76 billion and £137.09 billion respectively.

Homeowners in the South East were also more likely to own their home outright by the time they reach the age of 65, with 656,000 people enjoying their retirement mortgage free, compared with just 264,600 of people aged 65 and over in Wales.

Despite the rise in property equity during the three month period, total assets remain just short of the £771 billion recorded in August 2012.

Dean Mirfin, group director at Key Retirement Solutions, which carried out the research, said: "The rise in pensioner property equity is very welcome after two quarters of decline and there are real bright spots with pensioners gaining an average of nearly £12,000 from their homes.

"Whatever the trend in the housing market, 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," he concluded.

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