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British pensioners own property worth GBP 765.18bn

Friday 5th March 2010

By Mike Jones

Retired homeowners have total property wealth owned outright of up to £765.18billion as the housing market continues its fragile recovery, according to research from equity release adviser Key Retirement Solutions.

The launch of Key Retirement Solutions’ Pensioner Property Equity Index, which will track the property wealth of the over-65s on a quarterly basis, shows that a third of the housing wealth is concentrated in London and the South East.

Over-65s in the South East own property without any mortgages worth £123.44billion compared with £122.65billion held in London, the index shows.

However property wealth is spread throughout the UK with retired homeowners in the South West holding 15% of the total housing equity stock and a total of £115.64billion.

Dean Mirfin, Business Development Director at Key Retirement Solutions, said: "The housing market has been through a tough time and there are still doubts over the strength of the recovery.

"However it is undeniable that the over-65s own considerable property wealth outright which represents a massive investment success as many of them will have bought their homes more than 20 years ago.

"The property wealth owned outright by pensioners represents a potential source of income for the over-65s particularly when other sources of retirement income are under pressure from low interest rates and annuity rates."

The index shows over-65 homeowners in the North West are most likely to own their home outright – Key Retirement’s analysis shows 684,200 own their homes without mortgages compared with 657,800 in the South West.

However higher property prices in the South East and London means over-65 homeowners there have more property wealth.

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