PENSIONERS OWN PROPERTY WORTH £765.18 BILLION AS HOUSING MARKET GROWS
- Nearly a third of pensioner property wealth is in the South East and London, Key Retirement Solutions Pensioner Property Index shows
Retired homeowners have total property wealth owned outright of up to £765.18 billion as the housing market continues its fragile recovery, new research* from leading independent equity release adviser Key Retirement Solutions shows.
The launch of Key Retirement Solutions’ Pensioner Property Equity Index, which will track the property wealth of the over-65s on a quarterly basis, shows that a third of the housing wealth 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.
However property 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.
Dean Mirfin, Business Development Director at Key Retirement Solutions, said: “The housing market has been through a tough time and there are still doubts over the strength of the recovery.
“However it is undeniable that the over-65s own considerable property wealth outright which represents a massive investment success as many of them will have bought their homes more than 20 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 and annuity rates.”
| 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 | £123.44 billion | 16.13% | 590,000 |
| London | £122.65 billion | 16.03% | 364,800 |
| South West | £115.64 billion | 15.11% | 657,800 |
| North West | £80.63 billion | 10.54% | 684,200 |
| East | £74.94 billion | 9.79% | 432,000 |
| East Midlands | £56.02 billion | 7.32% | 433,400 |
| West Midlands | £47.72 billion | 6.24% | 345,600 |
| Scotland | £45.79 billion | 5.98% | 292,800 |
| Yorks/Humbs | £33.94 billion | 4.44% | 271,700 |
| Wales | £33.97 billion | 4.44% | 273,000 |
| North East | £30.41 billion | 3.97% | 277,200 |
| GREAT BRITAIN | £765.18 billion | 4,622,500 |
The index 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.
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:
Dean Mirfin, Business Development Director
Key Retirement Solutions
07879 678737
Press Office
Key Retirement Solutions
01772 508533
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.
