The UK’s over-65s have now amassed a huge £1trn of housing wealth after benefiting from years of capital appreciation, and many will be helping out younger generations.
Retired homeowners aged 65 and over made average gains of £9,741 in the past year from their properties, according to the latest data from Key Pensioner Property Index, with the biggest boosts being seen in the Midlands, Scotland and East Anglia.
On average, pensioners who own their properties outright made £812 a month from their homes over the last 12 months, which rose to £1,170 in the East Midlands, £1,002 in the West Midlands, £989 in Scotland and £973 in East Anglia.
Since 2010, the total accumulated property wealth of retired homeowners has grown by around 41%, according to the figures, which amounts to £320bn, supporting the strength of bricks and mortar investment in the UK despite any short-term fluctuations seen in the property market over the years.
Benefiting the next generation
“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.”
Mirfin added: “In many cases though it is just to help them with money at a time when they need it most. Equity release is increasingly benefiting the whole family.”
Recent research also found that an increasing number of over-55s are using equity release as a means of freeing up some of the cash from their properties in order to invest even more in bricks and mortar. Equity release is only available to those aged 55 and over, and can involve either releasing a lump sum of money from the home or taking out smaller amounts over time.