Pensioner property wealth exceeds £1 trillion

Permitted development rights are set to be extended in the autumn. Picture: Getty Images/iStockphoto

Permitted development rights are set to be extended in the autumn. Picture: Getty Images/iStockphoto - Credit: Getty Images/iStockphoto

Homeowners over the age of 65 are more than £19,000 better off since May, new findings show.

According to recent research, retired homeowners’ wealth has reached over £1 trillion, despite fears property prices would fall as a result of Brexit.

Those who have paid off their mortgages earned £19,120 tax-free in the past three months – taking their property wealth to a record high.

And customers who chose to release equity took advantage of low rates to cash in on their homes, releasing £76,300 on average, which rose to more than £184,000 in London.

The south east of England accounts for a fifth of all pensioner property wealth, replacing London as the ‘richest’ region.

The study was undertaken by leading over-55s financial specialist KeyRetirement.com and confirms that the housing market continues to boom. Its Pensioner Property Index shows over-65s own homes worth £1.01 trillion outright.

But pensioners in Scotland and London missed out in the past three months, with Londoners seeing average falls of £62,000 and Scots suffering declines of almost £16,000.

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Dean Mirfin, technical director at KeyRetirement.com, said: “Property wealth is a growing asset for pensioners, highlighting the success of investing in a home for the over-65s.

“Property has performed very well, with average over-65s making more than £9,000 a year during a period of record low interest rates and stock market volatility.

“With record low interest rates, it is hardly surprising that property gains are being capitalised upon throughout the UK.”