- But five areas suffer house price falls with Scotland the biggest loser, Key Retirement Solutions Pensioner Property Index shows
Retired homeowners have total property wealth owned outright of up to £767.06 billion as the housing market maintains its fragile recovery, new research* from leading independent equity release adviser Key Retirement Solutions shows.
Homeowners aged 65-plus gained a collective £1.875 billion in the past three months, Key Retirement Solutions’ Pensioner Property Equity Index shows.
But there were nearly as many losers as winners with five of the 11 areas in Great Britain seeing house price falls with Scottish pensioners the biggest losers suffering a 7.8% drop in property equity – equivalent to £12,249 – between March and June.
The biggest winners were over-65 homeowners in the North East of England who gained 4.62% on average – around £5,066 each – and those in the North West were £2,152 better off – 1.83% up.
Key Retirement’s figures show nearly a third of property equity is owned by pensioners in London and the South East of England – in London over-65s own property without any mortgages worth £124.57 billion while in the South East pensioners own £123.13 billion of property without mortgages.
However property wealth is spread throughout Great Britain with retired homeowners in the South West holding 15.2% of the total housing equity stock and a total of £116.72 billion.
Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “The housing market recovery remains patchy with winners and losers across the country but even those pensioners who have seen prices fall are still literally sitting on riches.
“It is undeniable that the over-65s own considerable property wealth outright which represents a massive investment success as they no longer have mortgages and will have bought more than 25 years ago.
“The property wealth owned outright by pensioners represents a potential source of income for the over-65s particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates.”
The table below shows six of the 11 areas monitored by Key Retirement Solutions index experienced increases in the past three months while five suffered falls including Scotland, the South East, West Midlands, Yorkshire & Humberside and Wales.
| Region | Average change in value of home equity for homeowners aged 65+ (between March 2010 index and June 2010 index) | Combined change in value of home equity for homeowners aged 65+ (between March 2010 index and June 2009 index) |
| South East | -£532 | -£313.88 million |
| London | +£5,275 | +£1.924 billion |
| South West | +£1,638 | +£1.077 billion |
| North West | +£2,152 | +£1.472 billion |
| East | +£1,843 | +£796.17 million |
| East Midlands | +£204 | +£88.41 million |
| West Midlands | -£1,946 | -£672.5 million |
| Scotland | -£12,249 | -£3.586 billion |
| Yorks/Humbs | -£133 | -£36.13 million |
| Wales | -£1,022 | -£279 million |
| North East | +£5,066 | +£1.404 billion |
| GREAT BRITAIN | £27.36 | +£1,875 billion |
The table below shows over-65 homeowners in the North West are most likely to own their home outright – Key Retirement’s analysis 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.
| Region | Estimated property equity in homes owned outright by people aged 65+ (end January 2010) | Estimated percentage of total value of property equity belonging to people aged 65+ (end January 2010) | Number of households in the region owned outright by people aged 65+ |
| South East | £123.13 billion | 16.05% | 590,000 |
| London | £124.57 billion | 16.24% | 364,800 |
| South West | £116.72 billion | 15.22% | 657,800 |
| North West | £82.1 billion | 10.7% | 684,200 |
| East | £75.74 billion | 9.87% | 432,000 |
| East Midlands | £56.11 billion | 7.32% | 433,400 |
| West Midlands | £47.05 billion | 6.13% | 345,600 |
| Scotland | £42.2 billion | 5.98% | 292,800 |
| Yorks/Humbs | £33.909 billion | 4.42% | 271,700 |
| Wales | £33.69 billion | 4.39% | 273,000 |
| North East | £31.81 billion | 4.15% | 277,200 |
| GREAT BRITAIN | £767.06 billion | 4,622,500 |
Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 531 6010 or by visiting https://www.keyrs.co.uk/free-guide.
Notes to Editors
* Key Retirement Solutions Equity Release index tracks the amount of equity held in property by people over 65 years old in Great Britain. Figures are based on analysis of data from the ONS Family Spending Report (2009), the Land Registry House Price Index, Registers of Scotland House Price Statistics and ICM (2010).
For more information, please contact:
Citigate Dewe Rogerson
Phil Anderson/Kevan Reilly/Paul Griffin
0207 282 1031/1096/1041
About Key Retirement Solutions
Founded in 1998 Key Retirement Solutions is the leading independent adviser specialising in equity release. Key Retirement Solutions is a limited company registered in England No 2457440 with its Head Office at Key Retirement Solutions, Harbour House, Portway, Preston, Lancashire, PR2 2PR.Key Retirement Solutions is authorised and regulated by the Financial Services Authority.
