Over-65s have seen their property wealth increase by nearly £1,400 a month in the past year despite uncertainty in the housing market and recent falls, new analysis from the UK’s leading equity release adviser Key Later Life Finance shows.
The total property wealth owned outright by over-65s has increased by £167.016 billion worth an average £16,658 for each homeowner who has paid off their mortgage over the last twelve months.
Their total property wealth now stands at £3.02 trillion with older homeowners in all parts of Great Britain benefiting. Older homeowners in London have seen the biggest individual gains at £23,974 – an average of nearly £2,000 a month for the past year.
The South East and South West regions saw the biggest total collective gains at £30.2 billion and £23.2 billion, respectively. Scotland saw the smallest individual gains, but homeowners are still £2,230 better off.
Housing wealth can boost retirement finances
When put into context, the average £16,658 gain in housing wealth since January 2022 equates to just over 32 weeks income for the average pensioner couple (£515) or a year and 17 weeks of income for a single pensioner (£239)**.
Should the homeowner choose to release the typical equity release LTV, this could equated to £93,511 to boost their retirement income, manage borrowing or help to support their wider family. This is an increase of £8,000 over twelve months (£85, 497 – 2022).
| Great Britain | Wales | Scotland | |
| LTV (2023) | 31% | 30% | 37% |
| Av. Release | £93,511 | £65,061 | £68,456 |
| LTV (2022) | 30% | 30% | 32% |
| Av. Release | £85,497 | £61,875 | £58,492 |
Will Hale, CEO at Key, said: “While there is no doubt that we have started to see prices falling in 2023, the gains homeowners saw in early 2022 still mean that they are over £16,000 better off than in January last year. A strong housing market is important for the economy, and we are starting to see some green shoots with mortgage approvals rising but that said inflation rather than house prices are likely to be older homeowners’ biggest source of concern.
“Retirees spending patterns mean that they use a disproportionate amount of their often fixed income to cover utilities, groceries and other basics so the 9.2% rate of income hits them particularly hard. While the recent state pension increases will no doubt be welcome, more older people than ever are having to make hard choices around their finances.
“Accessing the £3.02 trillion worth of equity tied up in their homes can help with both short-term and longer-term needs. Whether it is boosting income, repaying borrowing, supporting family or making your home more energy efficient, people need to realise they have flexible products to consider. Lifetime mortgage are no longer necessarily for a lifetime and with a host of safeguards as well as options to choose from, customers have more choice at a time when they most need it.”
Detailed Regional Picture:
The table below shows the detailed picture across Great Britain with all areas seeing growth and the South West leading the way with total home equity rising by £16.666 billion while Londoners saw the biggest average individual gains at £16,081.
Region | Average change in value of home equity for homeowners aged 65+ in 2022 | Combined change in value of home equity for homeowners aged 65+ in 2022 |
| London | Up £23,974 | +£22.658 billion |
| South West | Up £22,223 | +£23.221 billion |
| West Midlands | Up £20,885 | +£20.035 billion |
| South East | Up £20,057 | +£30.432 billion |
| East Anglia | Up £16,485 | + £17.367 billion |
| East Midlands | Up £16,074 | + £13.042billion |
| North West | Up £14,640 | + £17.624 billion |
| Yorks/Humbs | Up £13,110 | + £11.546 billion |
| North East | Up £12,584 | + £5.267 billion |
| Wales | Up £10,620 | +£4.014 billion |
| Scotland | Up £2,230 | + £1.806 billion |
| GREAT BRITAIN | Up £16,658 | +£167.016 billion |
The table below shows nearly 37% of all housing wealth owned by over-65s is concentrated in the South East and London even though more older homeowners in East Anglia, the South West, North West, and West Midlands own their homes outright than in London.
Region | Estimated property equity in homes owned outright by people aged 65+ | Estimated % of total value of property equity belonging to people aged 65+ | No. of households in the region owned outright by people aged 65+ |
| South East | £604.436 billion | 19.99% | 1,517,283 |
| London | £506.582 billion | 16.75% | 948,681 |
| East Anglia | £377.293 billion | 12.47% | 1,053,558 |
| South West | £340.502 billion | 11.39% | 1,044,925 |
| North West | £258.145 billion | 8.54% | 1,203,862 |
| West Midlands | £246.247 billion | 8.14% | 959,303 |
| East Midlands | £204.133 billion | 6.75% | 811,414 |
| Yorks/Humbs | £182.869 billion | 6.05% | 880,727 |
| Scotland | £151.888 billion | 4.96% | 810,000 |
| Wales | £81.977 billion | 2.71% | 378,000 |
| North East | £68.389 billion | 2.26% | 418,612 |
| GREAT BRITAIN | £3.024 trillion | 10.026 million |
There is a wealth of information online for customers to educate themselves on later life finances. On Key’s website consumers can use the later life mortgage finder tool to find out further information as well as being able to download a full guide regarding later life finances. www.keylaterlifefinance.co.uk.
Customers have rated Key Later Life Finance as Excellent with over 17,046 Trustpilot reviews giving the company a rating of 4.8 out of five.
