Retired homeowners enjoy a £1k rise in property wealth a year
Retired homeowners saw their property wealth increase by more than £1,000 in the past year, despite the subdued housing market, according to equity release adviser Key.
It found that retired homeowners saw an increase of £5.445 billion in their property wealth between June 2018 to June 2019 – equivalent to £1,160 each.
In fact, over-65s have benefited from property price growth of 41% – a total of more than £316 billion since 2010 – earning them gains of £67,000 in almost a decade.
But of course, the national average doesn’t tell the whole story – regional variances are wide.
Winner and losers
Over-65s in the West Midlands are nearly £7,500 better off than a year ago with retired homeowners in Wales (£6,560) and the North West (£6,297) also recording strong gains in the past 12 months.
Retired mortgage-free homeowners in London, however, have lost more than £1,000 a month in the past year while over-65s in the South East and East Anglia have also seen property wealth values drop. Scottish retired homeowners saw property wealth slip slightly.
Will Hale, CEO at Key, said: “The basic fact is that no matter what happens month to month to house prices millions of over-65s will continue to hold considerable property wealth which can transform their standard of living in retirement and enable them to address a wide range of financial issues.
“Increasingly equity release customers are able to help their adult children or even grandchildren to pay for house deposits while also being able to sort out their own finances whether it is clearing debts or even paying off mortgages.
“Equity release is not right for everyone but it is clear that if your home is your largest asset you should take some time to assess what role property wealth can play in retirement planning. Speaking to a specialist adviser is key to making smart choices.”