The increases mean that 6.3 million retired homeowners have gained around £2,680 each in the past three months at a rate of £29 a day as the total value of their homes rose to £1.08 trillion.
The biggest rises were in London and the North East where house price increases saw pensioners gain £8,977 and £8,384 each on the value of their properties respectively. Welsh pensioners’ property value also continued to soar, having collectively increased by £1.68 billion during the past three months and by over £4.8 billion so far this year. This equates to an increase of £5,440 per retired homeowner for the past three months.
However not all pensioners saw house price rises in the three months to September 30. Retired homeowners in the South West and East Midlands saw the value of their homes fall by £1.24 billion and £1.14 billion respectively as their areas recorded a 1.4% drop in house prices. This equates to a £2,678 and £2,888 loss per retired homeowner respectively. Scottish pensioners collectively lost £486 million in the value of their homes – or £902 per retired homeowner. However they have seen a total rise of nearly £4 billion since January this year.
Mark Neal, managing director of Economic Lifestyle, said: “For most pensioners their property represents their most substantial financial asset. However living in a valuable house while struggling to get by on a pension does not make you feel wealthy.
“As increasing numbers look to convert some of this wealth into cash through downsizing or equity release schemes, the news of an increase in property value should be welcomed.
“It is good news that British pensioners are some £20 billion better off than they were this time last year. They should perhaps consider how best to make use of the riches invested in their homes.”
