Embargoed until 00.01 hours on XX June 2017

RETIRED HOMEOWNERS EARN £127 BILLION IN A YEAR FROM THEIR HOUSES

• Homeowners over 65 years of age have property wealth of £1.054 trillion, Key Retirement’s Pensioner Property Index shows
• Annual growth achieved despite property market slowdown hitting property wealth in past three months

Retired homeowners have each earned more than £2,400 a month from their houses in the past year, new analysis* from leading over-55s financial specialist Key Retirement shows.

Total property wealth owned by over 65s who have paid off their mortgages is now worth £1.054 trillion, with average retired homeowners making £29,010 in the year to May.

More than £127 billion has been added to the property wealth of the UK’s homeowners aged over 65 in the past year despite the recent slowdown in the housing market.

The long-term success story of property ownership is underlined by Key’s index. Since the group started analysing over 65s housing wealth in 2010 retired homeowners have seen growth of 35%, or £274 billion. Owning a home has been worth around £62,000 over the past seven-and-a-half years.

Key’s Pensioner Property Equity Index shows only over 65s in London and Scotland saw the value of their total property wealth drop in the past year. However, retired London homeowners still own £172.65 billion of property wealth.

Retired homeowners in East Anglia saw the biggest growth in the past year, and are now £56,138 better off – the equivalent of nearly £4,700 a month. Over 65s in the South East and South West saw gains of more than £40,000 each, while retired homeowners in the West Midlands made nearly £40,000.

The long-term financial benefits of owning a house is underlined by average equity release payouts of £73,610, and as much as £117,000 in London. However Key’s index shows property prices across all the regions monitored have fallen in the past three months.

Dean Mirfin, Technical Director at Key Retirement said: “Owning a house has been a major investment success for retired homeowners and the average gain of £29,000 demonstrates the contribution property wealth can make to retirement planning.

“Pensioners who have paid off mortgages have been able to rely on consistent tax-free returns from their homes, no matter what the impact of historically low interest rates and market uncertainty has been.

“Whatever happens in the property market homeowners will always have a major asset that can make a major contribution to their retirement standard of living whether it is generating extra income or capital to help loved ones.”                                               

The table below shows the detailed picture across Great Britain

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.

Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6010 or visiting: https://www.keyretirement.co.uk/equity-release/free-guide/

ENDS

Notes to Editors

* Key Retirement’s Pensioner Property 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 (2014), the UK House Price Index, Registers of Scotland House Price Statistics andICM (2014) and Key Retirement’s UK Equity Release Market Monitor.

** Analysis based on Key Retirement market data for 2016

For more information, please contact:

Dean Mirfin

KR Group

E-mail: [email protected]

Press Office

Key Retirement

01772 508316

E-mail: [email protected]

Citigate Dewe Rogerson

Kia McLean/Elleri Hughes

020 7282 1092/1041

About Key Retirement

Founded in 1998 Key Retirement is the leading specialist provider of financial solutions to the over 55’s. Key Retirement’s head office is located at Key Retirement, Baines House, Midgery Court, Pittman Way, Fulwood, Preston, PR2 9ZH.