Data shows that the total property wealth owned outright by over-65s so far this year has increased by £101.5bn to £3tr and is worth an average of £10,121 for each homeowner who has paid off their mortgage.
Total property wealth now stands at £2.95tr with older homeowners in all parts of Great Britain benefiting. The biggest gains per household this year were in London where homeowners are more than £16,000 better off while in the Southwest average gains are just behind at £15,950.
As a region, the Southwest saw the biggest total gain at £16.7bn ahead of the South East and London at £15.5bn and £15.3bn.
With inflation now hitting more than 10%, over-65s who are retired or are on a fixed income are likely to be feeling the pinch. However, housing equity can help people to meet this income shortfall and the average gain in housing wealth this year equates to nearly 20 weeks of income for the average pensioner household (£511) or 41 weeks for single pensioners (£246).
This increase in property value has been driven by the pandemic and the Stamp Duty holiday, making the property market extremely buoyant. The cost of living crisis is likely to have an impact at the moment, but it is still likely that older homeowners will still have substantial equity tied up in their homes.
At Viva Retirement Solutions we work with our clients on a wide range of different reasons for releasing equity in their home. But we are seeing an increase in people using it to fund their retirement and help with unexpected debt caused by price increases. We will always advise you whether releasing equity is the right thing for you. Why not contact us today to arrange a free no obligation appointment in the comfort of your own home.