Since Key Retirement began recording housing wealth of over-65s in 2010, this sector of homeowners has seen growth of 41%, or £321bn.
Despite uncertainties in the housing market, the typical retired homeowner saw some £660 of gains a month on average over 2017. The biggest rises were seen in the South East and East Anglia, with gains of over £1,000 a month, while retired owners in the West midlands made £960 a month.
In total, property wealth for over-65s grew by £37bn in 2017.
Key Retirement said that the strength of the housing market means property wealth is making a “major contribution” to standards of living in retirement, as the equity release market expands to convert property wealth into cash.
Statistics
According to data from the over-55s finance specialist, the average equity release customer releases an average of £77,380 of property wealth, with the figure jumping to £134,000 in the capital, and £91,000 in the South East.
In January, it was revealed that the equity release market breached £3bn in lending over 2017, with 42% year-on-year growth.
Dean Mirfin (pictured), chief product officer at Key Retirement said: “The long-term strength of the housing market is delivering for retired homeowners who have made around £7,900 in the past year.
Mirfin continued: “Total property wealth of more than £1trn means pensioners who have paid off mortgages can rely on using their homes to generate tax-free returns no matter what happens in the short and medium term.
“The average homeowner is releasing through equity release the equivalent of the gains made since 2010 and property wealth is having a dramatic effect on the standards of retirement living for many thousands across the UK,” he added.
