Pensioner equity rises to new high

The amount of money locked up in homes owned by the over-65s has grown by almost £17.5 billion in the past three months.

New figures from Key Retirement’s Pensioner Property Index found that pensioner homeowners have become on average £3,725 better off over the course of the last quarter. In total, the over-65s are sitting on almost £900 billion in property value.

London residents saw the largest increase over the past three months, with typical equity levels up by more than £14,000, while across the South-east the average rise was £8,290.

The picture was markedly different north of the border, however: in Scotland, the typical level of equity fell by £6,065 between May and August, Key’s research found.

Dean Mirfin, technical director at Key Retirement, said: “The strength of the housing market is reflected in the growth in the amounts being released through equity release plans which are now an average of £68,500 – an amount which dwarfs the average pension pot in the UK.

“The success of property investment for millions of over-65s homeowners highlights how homes are major assets which should be considered as part of anyone’s retirement planning

“Property prices rise and fall but over-65 homeowners control more than £891 billion in assets which can make a major contribution to enhancing retirement lifestyles.”