Wealth Locked In Homes Of Retired Owners Reaches Record Levels
The wealth locked within the homes of retired home owners has reached record high levels of £1.118 trillion.
According to the pensioner property index by Key, equity release specialists, property wealth in homes owned by people over 65-years-old increased in value by £28 billion within the last six months alone.
In the time since the data was first recorded in 2010, homes owned by older generations have increased in value by 43% or £340 billion.
The figures also suggest that in the last six months, on average, those aged over 65 have made over £1,000 per month in the value of their homes.
Some areas have even exceeded this average six month increase of £6,000. Those in Yorkshire and Humberside, have enjoyed increases of £8,607 during this period with homes in the North West and Wales increasing by £7,546 and £7,875 respectively.
Will Hale, Key’s chief executive officer, commented: “The numbers are fascinating but the basic fact is that no matter what happens year to year to house prices many over-65s will have considerable property wealth which can transform their standard of living in retirement and help family members.
“Increasingly equity release customers are able to make substantial gifts to family members including their adult children or even grandchildren with money being used to clear debts, fund university fees and pay for house deposits and weddings. Customers can also use the money to age proof their own homes and preserve wealth for the family.
“While equity release is not right for everyone, it is clear that if your home is your largest asset in retirement, you should take some time to think through when and if you might need to access this wealth.”
Whilst Brexit uncertainty may taint these numbers in the coming months, the lucky few that have owned the same property for many years will certainly benefit from the money that has accrued throughout the time they have lived in the property. This property wealth has been an increasingly important factor for first-time buyers over recent years and to help fund retirement as the population ages.
Have you noticed the bank of mum and dad helping more first-time buyers in recent years? What does this property wealth mean for the conveyancing sector?