Data from equity release advice firm Key Later Life Finance found that more than 10 million people aged 65 and over owned their properties outright and did not have a mortgage.
The firm said this wealth could be put to use.
Over-65s in the South East of England have the highest value of property wealth at over £582bn, followed by London, where they hold more than £570.7bn.
More than a third – 37% – of the property wealth held by older homeowners is in the South East and London, but considerable wealth is also in other parts of Britain.
The property wealth of the over-65s in the East of England is more than £358.6bn, while £319.5bn is held in the South West.
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
|
Region |
Total over-65s property equity |
Number of over-65s owning houses outright |
|
Scotland |
£152.933bn |
810,000 |
|
Wales |
£78.698bn |
378,000 |
|
East Midlands |
£196.391bn |
811,414 |
|
East of England |
£358.615bn |
1,053,558 |
|
London |
£520.767bn |
948,681 |
|
North East |
£67.559bn |
418,612 |
|
North West |
£254.050bn |
1,203,862 |
|
South East |
£582.037bn |
1,517,283 |
|
South West |
£319.582bn |
1,044,925 |
|
West Midlands |
£234.423bn |
959,301 |
|
Yorkshire and the Humber |
£179.653bn |
880,727 |
|
Total for Great Britain |
£2.944trn |
10.02 million |
Key’s analysis of government data found the average pensioner income in retirement was £20,120, rising to £29,170 for couples. The firm said this could be boosted by using the equity they have in their homes.
This property wealth can also be used to support children and grandchildren to get onto the property ladder.
Will Hale, CEO of Key Advice, said: “Over-65s have considerable wealth tied up in their homes and are literally sitting on money that could give them a more comfortable or fulfilling retirement. Alternatively, this wealth could be used to provide a living inheritance and offer family members cash at a point in their lives when they need it most; for example, when children or grandchildren are looking to get on the housing ladder.
“Lifetime mortgages enable money to be drawn down tax-free, which can be a sensible way for over-65s to fund retirement needs or to make gifts in a tax-efficient way. However, everyone’s circumstances are different, and it is important that these products, which do have some downside risks, are accompanied by specialist advice.”
