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 […]
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
| Region | Average change in value of home equity for homeowners aged 65+ (between September and November) | Combined change in value of home equity for homeowners aged 65+ (between September and November) |
| South East | increase of £3,460 | +£2.269 billion |
| London | Increase of £15,445 | +£3.407 billion |
| South West | increase of £6,275 | +£3.931 billion |
| North West | Increase of £2,525 | +£1.694 billion |
| East Anglia | increase of £7,219 | +£3.407 billion |
| East Midlands | increase of £3,979 | +£1.715 billion |
| West Midlands | increase of £5,553 | +£1.990 billion |
| Yorks/Humbs | increase of £1,693 | +£488.599 million |
| Scotland | £276 decrease | -£77.832 million |
| Wales | increase of £1,150 | +£304.29 million |
| North East | increase of £743 | +£204.325 million |
| GREAT BRITAIN | +£4,786 | +£21.105 billion |
