Mike Smuts December 12, 2016 Uncategorized no responses

Latest research from Key Retirement had showed that, on average, retired homeowners have earned £26k from their houses this year.

According to the data, total property wealth owned by over-65s who have paid off their mortgages grew to a new record high of £1.031tr in the past three months with average pensioner homeowners gaining more than £2,300 a month since January.

Other Key Findings

  • Over £114bn has been added to the property wealth of the UK’s over-65 homeowners since the start of the year 2016.
  • Since Key started analysing over-65s housing wealth in 2010, total pensioner property wealth has increased by around 34% or £266 billion which is worth around £60,300 on average for every homeowner.
    • Owning a home has been worth around £9,300 a year for over-65s.
    • Londoners made £15,445 a year each
    • Homeowners in the South West were around £6,275 a year better off.
    • Scotland experienced a fall it was relatively minimal at £276 a year.

Dean Mirfin, technical director at Key Retirement, said: “Property investment has earned £26,000 this year for over-65s homeowners highlighting the long-term benefits of owning a home.

During a period of historically low interest rates and investment market volatility pensioners who have paid off their mortgages have been able to rely on steady tax-free returns from their home demonstrating the increasing importance of property to retirement planning.

The equity release market is responding with new products and record low rates to enable more customers to make full use of their property investment and use their money for a wide range of purposes.”