Homeowners over 65 make £500-plus a month from rising property prices
Over-65s have seen a monthly rise of £561 in their property wealth over the last three months alone, according to Key.
The equity release business said those in East Anglia and Wales have enjoyed even bigger gains of £10,000 and £8,300 respectively over three months.
The only region to see property values drop in the past three months was the South West where average prices are around £738 lower in the past three months.
Older homeowners now own property wealth worth £1.232 trillion – and growing.
Over the long-term over-65s have seen even stronger growth in the property wealth.
Since Key started measuring mortgage-free property wealth of the over-65s in 2010 homeowners have seen growth of 58% – a total of more than £452 billion.
That’s the equivalent to £90,420 per household in the past 11 years.
Will Hale, CEO at Key said: “Over the last three-months, the property market has been buoyant – spurred on by the extension of the Stamp Duty Holiday and the launch of Government guarantees for over 95% LTV mortgages.
“That said, the market performance over the last eleven years has generally been positive and over-65s homeowners seen their property wealth increase by an average of £90,420 over the period.
“Sitting in a quarter of a million pound home unable to keep the heating on or meet other day-to-day living costs makes no sense. Today’s modern equity release products can help people access some of the value tied up in their properties to address these issues and then through flexible features enable them to manage their borrowing by choosing to make ad hoc capital repayments or to service the interest if they wish.”