Total property wealth owned by over-65s who have paid off their mortgages is near a record high of more than £1.1trn, with average homeowners making around £812 a month since May last year, Key’s Pensioner Property Equity Index has revealed.
Over-65s in the East Midlands have been the biggest winners with their property wealth climbing by nearly £1,170 a month.
However, pensioners in the West Midlands (£1,002), Scotland (£989) and East Anglia (£973) have all seen significant gains and no areas have recorded price falls.
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.
Since the tracker launched in 2010, retired homeowners have seen housing wealth growth of 41%, or £320bn.
Key chief product officer Dean Mirfin said retired homeowners continue to see the benefits of property investment with average gains of £9,741 in the past year.
He added: “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.”