Value of property owned by pensioners jumps £20 billion in three months.
The value of property owned by British pensioners has jumped by more than £20 billion over the past three months, reaching a total of nearly £828 billion. That’s according to the latest research from Key Retirement Solutions.
That breaks down to an average of £4,341 per homeowner, if they own their property outright, the equivalent of almost £1,500 a month.
As a result of the price increases, pensioner property wealth is now at a record high.
The biggest winners
The table below breaks down how each individual region performed between May and August, and the estimated value of property owned by people aged 65 and over in those regions as a result.
|
Region |
Average change in value for homeowners aged 65+ |
Estimated value of property owned outright by people 65+ |
|
London |
£23,118 |
£160.164 billion |
|
South East |
£6,920 |
£149.639 billion |
|
Scotland |
£5,688 |
£45.718 billion |
|
Wales |
£4,165 |
£31.074 billion |
|
East |
£2,840 |
£88.651 billion |
|
South West |
£1,814 |
£113.339 billion |
|
Yorkshire/Humber |
£1,706 |
£34.256 billion |
|
West Midlands |
£1,696 |
£48.465 billion |
|
East Midlands |
£1,646 |
£55.637 billion |
|
North West |
£863 |
£73.746 billion |
|
North East |
-£758 |
£27.102 billion |
|
Great Britain |
£4,341 |
£827.796 billion |
As you can see, the North East was the only region to see a fall over the last quarter. It’s also the region where property owned outright by pensioners is worth the least.
In contrast, London saw huge gains and remains the region where pensioner-owned property is worth the most.
According to Key this house price growth is helping boost the equity release market, with £641 million released in the first half of 2014. That works out at an average of £65,000 per homeowner.
For more on how equity release works, read The pros and cons of equity release.
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What about younger homeowners?
It’s not just older homeowners that are enjoying house price growth though. The latest figures from the Land Registry reveal that annual house price growth hit 7.2% in July, rising 1.7% since June alone.
As a result the average house price in England and Wales now stands at £175,653, just £6,000 below its peak of £181,442 in November 2007.
Compare mortgages with lovemoney.com
More on property:
The pros and cons of equity release
Average price of flat jumps £50,000 in 10 years
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