Pensioners own property worth ?774.2bn

Homeowners aged 65-plus gained a total of £5.262bn – equivalent to an average £1,120 each, Key Retirement Solutions’ Pensioner Property Equity Index found.

The rise in property equity owned by over-65s continues the housing market recovery and takes pensioner property wealth back above the £771bn achieved in August 2012.

But the national increase masked major differences across the country with the over-65s in London continuing to benefit with average gains of £9,362 in the past three months taking their total gains in the past year to nearly £20,000.

In contrast retired homeowners in the North East of England are £5,316 down on a year ago while many other areas have stood still on a year ago or fallen slightly.

In the past three months six of the 11 regions monitored by Key Retirement Solutions recorded increases with the biggest falls in Scotland and Yorkshire & Humberside. Scottish over-65s lost an average £1,708 and in Yorkshire & Humberside they are £1,663 worse off.

Despite house market volatility Key Retirement’s figures show nearly 36% of pensioner property equity is owned by over-65s in London and the South East.

In London over-65s own property without any mortgages worth £140.52bn while in the South East pensioners own £137.75bn of property without mortgages. Nearly 70% of pensioner property wealth is concentrated in London, the South East, the South West, the East of England and the North West.

Dean Mirfin, group director at Key Retirement Solutions, said: “The continuing rise in pensioner property equity shows the housing market recovery is taking hold and there are real bright spots with pensioners gaining an average of more than £9,362 from their homes.

“When other sources of retirement income are under pressure with the Bank of England ruling out rate rises until 2016 at the earliest it is encouraging that all pensioner homeowners are literally sitting on a major asset.

“Whatever the trend in the housing market, even for those regions experiencing falls, over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages on homes they may have bought more than 25 years ago.”