Over-65s property wealth hits £775bn

Retired homeowners are sitting on total property wealth owned outright of up to £775bn, with their stock having gained £7.94bn in value in the past three months.

Research by Key Retirement Solutions revealed that, despite the ongoing fragility of the housing market, the average homeowner aged over 65 saw their property increase £1,717 in value between the beginning of June and the end of August.

However, there were distinct regional variations. Retired homeowners in Scotland were the biggest winners, gaining an average of £12,353, while those in the South West gained £3,713.

By comparison, retirees in North England saw the value of their homes drop £5,484 and those in the North West saw a fall of £1,643.

Nevertheless, those in the North West are most likely to own their homes outright.

Nearly a third of property equity is held by pensioners in London and the South East, according to Key Retirement's figures, with London pensioners owning more than £125bn-worth of housing.

Those in the South East own £124.9bn of property without mortgages.

However, property wealth is spread throughout Great Britain with retired homeowners in the South West holding 15.38% of the total housing equity stock and a total of £119bn.

Dean Mirfin, group director at Key Retirement Solutions, said:

"Over-65 homeowners generally own their houses outright and have not been as affected as the rest of the market. Even those pensioners who have seen prices fall are still literally sitting on riches."

He said: "Retired homeowners' property wealth represents an increasingly important potential source of income particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates."