Retired homeowners possess property worth £756.3bn
Monday 3rd December 2012
Retired homeowners have total property wealth owned outright of £756.36 billion, according to research from independent equity release adviser Key Retirement Solutions.
But over-65 homeowners in London, the South East and East of England are pulling away from the rest of the country, Key Retirement Solutions' Pensioner Property Equity Index found.
Across the country homeowners aged 65-plus lost a total of £368.9million in the past three months - equivalent to around £80 each - as the housing market stabilised, Key Retirement Solutions' Pensioner Property Equity Index shows.
But the national figure masked major gains in London where the average over-65 homeowner gained £4326 in the past three months while in the East of England they were £1786 better off and £1232 better off in the South East.
Over-65 homeowners in London have seen average gains of around £21,000 this year with the East of England £3350 up and the South East £3930 ahead. All other regions are either slightly down or marginally ahead.
The biggest loss in the past three months was in the West Midlands with over-65s £2768 worse off followed by average losses of £2526 in the North East.
Key Retirement's figures show 24% of pensioner property equity is owned by over-65s in London and the South East - in London over-65s own property without any mortgages worth £132.71billion while in the South East pensioners own £124.07billion of property without mortgages.
Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: "The housing market has stabilised but there is a real regional divide with big gains in London, the East of England and the South East.
"The rest of the country has either seen marginal gains or relatively small losses this year.
"But whatever happens in the housing market over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages on homes they may have bought more than 25 years ago.
"The equity release market is seeing strong growth in the number of plans sold and the money released as more pensioners opt for drawdown products. They enable customers to benefit from lower borrowing costs today, allowing for increased flexibility to access further funds over time as and when required."
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