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TODAY'S OTHER NEWS

Over-65s have gained £45.7bn of property wealth in a year

Retired homeowners have gained £9,744 each on average in property wealth over the past 12 month despite uncertainty in the property market, analysis from over-55s financial specialist Key reveals.

New data from the independent equity release advisor shows that the average retired homeowner gained £812 a month as pensioner property wealth remained above £1 trillion.

Over-65s in the East Midlands have seen the greatest gains, with their property wealth increasing by almost £1,170 a month.

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Pensioners in West Midlands (£1,002), Scotland (£989) and East Anglia (£973) have also seen significant gains. No areas have recorded price falls.

Dean Mirfin, chief product officer at Key, said: “Retired homeowners continue to see the benefits of property investment with average gains of £9,741 in the past year. Whatever the short-term changes in house prices, many over-65s have considerable property wealth which can make a huge contribution not only to their standard of living in retirement but also the financial wellbeing of family members.

“We are seeing an increasing number of customers choosing to gift some or all of the proceeds of equity release to help loved ones in a variety of ways, for some this is helping children or grandchildren take their first step on the housing ladder, for others to pay for expenses such as weddings.

“In many cases though, it is just to help them with money at a time when they need it most. Equity release is increasingly benefitting the whole family.”

The table below shows the detailed picture across Great Britain with all areas experiencing growth.

 

Region

Average change in value of home equity for homeowners aged 65+ (between May 2017 and May 2018 index)

Combined change in value of home equity for homeowners aged 65+ (between May 2017 and May 2018 index

South East

Up £10,582

+£6.942 billion

London

Up £7,111

+£2.603 billion

South West

Up £11,655

+£7.303 billion

North West

Up £7,281

+£4.886 billion

East Anglia

Up £11,681

+£5.513 billion

East Midlands

Up £14,003

+£6.038 billion

West Midlands

Up £12,029

+£4.311billion

Yorks/Humbs

Up £9,360

+£2.701 billion

Scotland

Up £11,865

+£3.346 billion

Wales

Up £1,148

+£303.760 million

North East

Up £6,382

+£1.755 billion

GREAT BRITAIN

Up £9,373

+£43.972 billion

 

The table below shows over-65s in the North West are most likely to own outright with 671,000 having paid off mortgages compared with 656,000 in the South East. However nearly a fifth of all property wealth held by retired homeowners is in the South East.

 

Region

Estimated property equity in homes owned outright by people aged 65+ (May 2018)

Estimated percentage of total value of property equity belonging to people aged 65+ (May 2018)

Number of households in the region owned outright by people aged 65+

South East

£211.295 billion

19.21%

656,000

London

£175.260 billion

15.93%

366,000

South West

£157.826 billion

14.35%

626,600

East Anglia

£136.317 billion

12.39%

472,000

North West

£105.703 billion

9.61%

671,000

East Midlands

£82.021 billion

7.46%

431,200

West Midlands

£68.928 billion

6.27%

358,400

Yorks/Humbs

£45.878 billion

4.17%

288,600

Scotland

£42.019 billion

3.82%

282,000

Wales

£39.397 billion

3.58%

264,600

North East

£35.387 billion

3.22%

275,000

GREAT BRITAIN

£1.100 trillion

 

4,691,400

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