Property wealth for retired homeowners increases £26,000

Retired homeowners have gained an average of £26,000 tax-free this year from their houses, new analysis from over-55s financial specialist Key Retirement shows.

Total property wealth owned by over-65s who have paid off their mortgages grew to a new record high of £1 trillion in the past three months, with homeowners gaining more than £2,300 a month since January.

More than £114 billion has been added to the property wealth of the UK’s over-65 homeowners since the start of the year as the housing market continues to expand.

Key’s Pensioner Property Index revealed that only Scottish over-65s saw falls in the value of their total property wealth in the past three months, with the rest of the UK recording strong growth.

Londoners made £15,445 each, while homeowners in the South West were around £6,275 better off.

Dean Mirfin, technical director at Key Retirement said: “Property investment has earned £26,000 this year for over-65s homeowners highlighting the long-term benefits of owning a home.

“During a period of historically low interest rates and investment market volatility pensioners who have paid off their mortgages have been able to rely on steady tax-free returns from their home demonstrating the increasing importance of property to retirement planning.”

Average increase in home equity value