Research from over 55s finance expert Key Retirement showed outright homeowners have gained an average of £3,725 each from houses in the past three months taking their property wealth to a new record high.
In the last five years total pensioner property wealth has increased by 14% to £111bn, or £23,700 on average for every homeowner.
Key said the strong growth in property prices will drive expansion of the equity release market, with current borrowers taking roughly £68,500 from home values.
Retired homeowners in London were the biggest winners gaining an average of £14,238 each in the past three months, while homeowners in the South East of England are more than £8,290 better off and pensioners in East Anglia are theoretically £8,524 better off.
Nearly two-thirds of pensioner property wealth is concentrated in London, the South East, the South West and East Anglia.
Dean Mirfin, technical director at Key Retirement said: “The strength of the housing market is reflected in the growth in the amounts being released through equity release plans which are now an average £68,500 – an amount which dwarfs the average pension pot in the UK.”
Scotland is the only part of the UK to see negative property price growth with average falls of -£6,065.
Research from Legal & General (L&G) revealed the housing stock owned by the over 55s will have grown in value by 51% in five years’ time to £1.2trn.
It estimates there are 3.3m 55+ year old homeowners in Great Britain considering downsizing.
L&G said it is clear so-called last time buyers will be key beneficiaries of the lack of supply in the GB housing market, although the same lack of supply may also restrict their ability to downsize.
Last week, speaking at an IMLA debate in London, FCA mortgage sector manager Lynda Blackwell said the huge housing supply issue facing the UK could be solved by finding solutions to help last-time buyers downsize.
She said with the current focus on first-time buyers, “Is the government focusing its efforts in the right place?”