Over-65s in London earn £14,000 plus from homes each year

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.”

More news and analysis on London house price news. 

Recommended

Vernon scraps equity release qualification for RIOs

Vernon Building Society will no longer require brokers to hold an equity release qualification when advising on its retirement mortgage, following a change in FCA requirements. In March the FCA decided to reclassify retirement interest-only mortgages as mainstream rather than equity release products, removing the need for advisers to hold a specialist qualification. The watchdog […]

Technology-Microchip-Tech-Computer-700x450.jpg

Twenty7Tec adds equity release to platform

Twenty7Tec has added equity release and lifetime mortgages to its mortgage sourcing system. This single platform is now used by more than 6,000 intermediaries. It sources information on standard residential and buy-to-let products, second charging mortgages, bridging finance, further advance and retention and loyalty products. Twenty7Tec has worked with Legal & General Home Finance to […]

Business-Handshake-General-Hire-Appointment-700x450.jpg

Online agents Emoov, Tepilo and Urban in £100m mega merger

Tepilo, Emoov and Urban.co.uk have agreed a £100 million merger which will create the UK’s second largest online estate agent after Purplebricks. The business has secured a total of £15m in new funding from existing and new shareholders, as well as an additional investment from Channel 4 which includes an advertising deal, plus further finance […]

Newsletter

News and expert analysis straight to your inbox

Sign up