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Property equity amongst retirees is no drop in the ocean

15 March 2010

Whilst the housing market may be experiencing an albeit fragile recovery, the fact remains that retired homeowners have total property wealth owned outright of up to £765.18 billion. The research has been produced by Key Retirement Solutions.

We may believe that property equity has been heavily hit by recent property price falls, however our research shows that many clients releasing equity in their homes have lived in the same property for in excess of 20 years, and despite the effects of the economic downturn pensioners are still sitting on vast amounts of equity.

We have launched the Key Retirement Solutions' Pensioner Property Equity Index, in order to track the property wealth of the over-65s on a quarterly basis. The first report shows the considerable amount of housing wealth which is concentrated in London and the South East. Over-65s in the South East own property without any mortgages worth £123.44 billion compared with £122.65 billion held in London, the index shows.

The full regional analysis can be found at: http://www.keyrs.co.uk/press-releases/pensioners-property-worth-76518-billion/

Whilst a considerable amount of property wealth is sited in the South East and London, housing wealth is spread throughout Great Britain with retired homeowners in the South West holding 15% of the total housing equity stock and a total of £115.64 billion.

These figures show that, despite the slow road to recovery, many retired homeowners have no reason to sit tight waiting for the tide to change. The over-65s own considerable property wealth outright which represents a massive investment success considering, as mentioned, that many of them will have bought their homes more than 20 years ago.

This wealth amongst pensioners is still heavily under utilized yet through schemes such as equity release, pensioners are able to effectively free up the equity to enjoy a richer retirement. The money released through either a lifetime mortgage or home reversion plan can be taken as capital, income or a combination of the two to make anyone's retirement years more fulfilling.

As well as the value of wealth tied up in their homes our index shows which areas of the country holds retired population who are most likely to own their homes outright. The findings reveal that over-65 homeowners in the North West are most likely to own their home outright – the report 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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Property equity amongst retirees is no drop in the ocean
15 March 2010

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