Pensioner property wealth exceeds £1 trillion
PUBLISHED: 10:56 21 September 2016 | UPDATED: 11:06 21 September 2016
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.
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.”
If you value what this story gives you, please consider supporting the Herts Advertiser. Click the link in the yellow box below for details.