Retired homeowners saw their properties gain £7,900 in value on average last year, taking overall property wealth among the over-65s past £1.1 trillion.
That’s according to the latest study from Key Retirement, which revealed that since it began tracking the housing wealth of those aged 65 or over in 2010, this demographic has seen the value of its property jump by 41%.
Last year alone the property wealth of the over-65s rocketed by £37 billion, the analysis found.
This worked out at £660 in gains a month for the average older property owner across 2017, with the biggest rises seen in the south east and east Anglia with monthly gains of more than £1,000. The west Midlands was not far behind with monthly gains of £960.
Key Retirement customers are releasing significant amounts of that property wealth too. The firm said that customers are releasing an average of £77,380 of property wealth, though this jumps sharply to nearly £134,000 in London and £91,000 in the South East.
Dean Mirfin, chief product officer at Key Retirement, said that the long-term strength of the housing market is delivering for retired homeowners, despite last year seeing more than its fair share of uncertainty.
He continued: “Total property wealth of more than £1trn means pensioners who have paid off mortgages can rely on using their homes to generate tax-free returns no matter what happens in the short and medium term.
“The average homeowner is releasing through equity release the equivalent of the gains made since 2010 and property wealth is having a dramatic effect on the standards of retirement living for many thousands across the UK.”
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