Retired homeowners in London who have owned their home for 27 years have experienced property wealth gains of £394,944 on average, according to a new study.
The total increase in property wealth is equal to gains of £14,257 per year.
Equity release specialist Key Retirement conducted the analysis, which revealed that the average over-65 in Britain has seen their property value increase by £159,000 in 23 years of ownership, equivalent to £7,000 per year.
Those in the South East who have owned homes for 21 years are more than £230,000 better off from buying a property, says the study, while over-65s in East Anglia who have been homeowners for 18 years have seen gains of £206,000 during the average time they have owned their current home.
Total property wealth owned by over-65s who have paid off their mortgages is near a record high of £1.09tn, says Key.
Key Retirement chief product officer Dean Mirfin says: “The long-term strength of the housing market is demonstrated by the fact that on average over-65s are making nearly £7,000 annually from their homes rising to more than £14,000 a year in London.
“Property wealth of more than £1tn enables pensioners who have paid off mortgages to generate returns which are making a huge contribution to their standard of living in retirement.
“They are also helping family and friends with 26 per cent of equity release customers saying they used some of the proceeds as financial gifts.”