Retired homeowners have seen their property wealth grow by nearly £13.7 billion in the past three months as house prices continue to climb earning the average pensioner more than £1,000 a month. Pensioners who own their homes outright have earned an average of £3,106 tax-free each from their houses in the past three months taking their property wealth to a new record high.
In the six years since Key started monitoring the housing wealth of the over-65s, in January 2010, total pensioner property wealth has increased by around 20% or £152 billion which is worth around £37,160 on average for every homeowner.
Its Pensioner Property Index shows over-65 homeowners now own property wealth of £917.1 billion outright with pensioners across almost all of the country benefiting in the past three months.
The continuing strong growth in house prices is highlighting the importance of property wealth for retirement planning, Key believes. That is underlined by growth in the equity release market with customers releasing property wealth taking around £72,000 on average.
Retired homeowners in London were the biggest winners gaining an average of around £15,061 each in the past three months, while homeowners in the South East of England are more than £4,537 better off and pensioners in East Anglia are £6,448 better off.
