Londoners saw an average fall of £62,000 while Scotland also experienced a decline of £16,000.
Speaking about the findings, technical director of Key Retirement Dean Mirfin noted that the figures shouldn’t alarm the industry.
“Whilst it looks like it is bad news for Londoners, when you actually look at the past six years actually it has experienced dramatic increases compared to the rest of the country. And Scotland tends to have its own climate in terms of what really happens with property value.”
“In terms of what’s going on with London’s property market is that it’s going through one of those cycles of prices settling a little and it tends to be that phase that London goes through and you see that repeated where you see considerable growth and then a period where it either slows or drops but then you will see that come back.”
The big question now is how long will it take for the London property market to bounce back from this, especially as other parts of the UK have experienced significant growth in property wealth.
The decline in property wealth among London and Scotland is in contrast to the rest of the UK
“In terms of that recovery, it may take a little while for it to come though. That’s why the real relevance is not the short-term with London, it is actually over the longer term that they see tremendous growth.”
The report found that pensioner property wealth has hit £1 trillion for the first time, quashing fears of property prices decreasing as a result of Brexit.
Homeowners who are over 65 are more than £19,000 better off since May 2016 with the South East of England now accounting for a fifth of all pensioner property wealth, replacing London as the wealthiest region in the UK.
