The greatest amount of property wealth held by this demographic is held by the 55-64 age group, who have £1.4trn of equity locked up in their homes.
Some £1.2trn is held by those aged 65-74 years old, while the oldest category of homeowners aged 75 and over holds £1.1trn.
With higher amounts of mortgage debt in relation to the value of their homes, the cohort of borrowers aged 25-34 years old possesses the least amount of housing wealth at a 4% share, valued at £219bn.
Unlocking property wealth
The figures released by the Office for National Statistics (ONS) following a data request by equity release lender Just reveals that almost 70% of the country’s housing wealth – the value of property held privately minus the value of mortgage debt – is in the hands of the over-55s.
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Stephen Lowe, group communications director at retirement specialist Just Group, said: “The sheer scale of property wealth held by older people enables them to plug into the powerhouse of financial resources held in their homes to meet a range of needs in later life – from topping up their own income in retirement to helping family.
“The ability to tap into this wealth will be particularly useful for people who may be entering retirement without the security of a defined benefit pension and with only modest defined contribution pensions. It can also power the next generation of homeownership, as parents use the wealth they have stored in their homes to help their children climb onto the property ladder.”
Total lending in the equity release market has increased by 32% year-on-year to £665m in the first quarter, according to the latest quarterly report from the Equity Release Council. The industry body said improved product choice and house price growth were the drivers behind a “significant increase in new customers taking lump sums”.
