Taylor Scott International News
Retired home owners in the UK have seen their property wealth grow by more than £12.5 billion in the past three months as house prices continue to climb, new research claims. It means that owning a property has earned the average pensioner nearly £900 a month, according to the retirement pensioner property index from over 55s financial specialist Key Retirement. Pensioners who own their homes outright have gained an average of £2,680 each from their houses in the past three months taking their property wealth to a new record high. In the five years since the firm started monitoring the housing wealth of the over 65s, in January 2010, total pensioner property wealth has increased by 12% or £93.85 billion which equates to £20,000 on average for every home owner. The index shows over 65 home owners now own property wealth of £873.77 billion outright with pensioners across almost all of the UK benefiting. The analysis from the report also suggests that the growth in property prices will drive expansion of the equity release market which enables home owners to release wealth from their homes. Retired home owners in London were the biggest winners gaining an average of around £16,260 each in the past three months, while home owners in Scotland are more than £8,650 better off and pensioners in Yorkshire and Humberside are £4,063 better off. However retired home owners in Wales saw a fall in housing wealth with average losses of £2,230 in the three months while the North West and West Midlands also saw house price falls. The figures show nearly a fifth of all pensioner property equity is owned by over 65s in London with total wealth of £173.683 billion. Nearly two thirds of pensioner property wealth is concentrated in London, the South East, the South West and East Anglia. ‘Retired home owners have huge assets in their houses with total property wealth hitting another all-time high of £873 billion highlighting the growing importance of housing for retirement planning,’ said Dean Mirfin, technical director at Key Retirement. ‘No matter what happens in the property market home owners will always have a major asset which should be considered as part of retirement planning. Innovation in the equity release market and the launch of pension freedoms are opening up more ways for homeowners to use their property wealth, he explained. ‘Retired home owners, and those approaching retirement, should take advice on how their property wealth can generate additional capital and/or income. Advisers and lenders need to focus on a holistic approach to retirement planning which ensures that property wealth is considered alongside pension savings and other investments,’ he added. Continue reading →
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