UK pensioners own property that is worth £775billion, according to equity release adviser Key Retirement Solutions.
The average homeowner aged 65 or older has gained £1,717 in value over the last three months, a collective £7.94billion, despite continued weakness in the property market as mortgage lending remains subdued.
The highest rise in pensioners' property values was seen in Scotland, where over-65 homeowners gained an average £12,353 of value, while in the North of England, pensioners' property lost value by an average of £5,484.
Dean Mirfin, group director at Key Retirement Solutions, said that because over-65 homeowners generally own their homes outright. "Even those pensioners who have seen prices fall are still literally sitting on riches," he said.
"The over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages and will have bought more than 25 years ago."
At a time when low interest rates and inflation are hitting pensioners' incomes from savings, investments, and annuities, their property wealth can help, Mr Mirfin added, becoming "an increasingly important potential source of income" through equity release.
© Fair Investment Company Ltd
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