SEPTEMBER 07, 2018 | BY A & S Property
Over-65s have gained £45.7bn of property wealth in a year
Retired homeowners have gained £9,744 each on average in property wealth over the past 12 month despite uncertainty in the property market, analysis from over-55s financial specialist Key Retirement reveals.
New data from the independent equity release advisor shows that the average retired homeowner gained £812 a month as pensioner property wealth remained above £1 trillion.
Over-65s in the East Midlands have seen the greatest gains, with their property wealth increasing by almost £1,170 a month.
Pensioners in West Midlands (£1,002), Scotland (£989) and East Anglia (£973) have also seen significant gains. No areas have recorded price falls.
Dean Mirfin, chief product officer at Key Retirement said: “Retired homeowners continue to see the benefits of property investment with average gains of £9,741 in the past year. Whatever the short-term changes in house prices, many over-65s have considerable property wealth which can make a huge contribution not only to their standard of living in retirement but also the financial wellbeing of family members.
“We are seeing an increasing number of customers choosing to gift some or all of the proceeds of equity release to help loved ones in a variety of ways, for some this is helping children or grandchildren take their first step on the housing ladder, for others to pay for expenses such as weddings.
“In many cases though, it is just to help them with money at a time when they need it most. Equity release is increasingly benefitting the whole family.”
The table below shows the detailed picture across Great Britain with all areas experiencing growth.
The table below shows over-65s in the North West are most likely to own outright with 671,000 having paid off mortgages compared with 656,000 in the South East. However nearly a fifth of all property wealth held by retired homeowners is in the South East.
Article courtesy of Landlord Today | Sign up for Landlord Today newsletter | Get this news on YOUR site!