Property equity can play a bigger role in retirement planning and in supporting the property market, suggests latest research.
Over-65s own property wealth of £2.944 trillion outright which could be put to use supporting their retirement planning and give a boost to the property market, data from KeyLater Life Finance reveals.
Its data shows more than 10 million over-65s own their properties outright without a mortgage and can potentially put the wealth to work. The equity value is actually greater than the annual GDP of most major countries including Italy, Brazil and Canada.
Over-65s in the South East of England own the most property wealth with more than £582 billion invested in homes followed by over-65s in London holding more than £520.767 billion in their homes.
More than two-fifths (37%) of the property wealth held by over-65s is concentrated in the South East and London but over-65s throughout Great Britain also hold considerable wealth as the table below outlines.
| Region | Total over-65s property equity | Number of over-65s owning houses outright |
| Scotland | £152.933 billion | 810,000 |
| Wales | £78.698 billion | 378,000 |
| East Midlands | £196.391 billion | 811,414 |
| East of England | £358.615 billion | 1,053,558 |
| London | £520.767 billion | 948,681 |
| North East | £67.559 billion | 418,612 |
| North West | £254.050 billion | 1,203,862 |
| South East | £582.037 billion | 1,517,283 |
| South West | £319.582 billion | 1,044,925 |
| West Midlands | £234.423 billion | 959,301 |
| Yorkshire & The Humber | £179.653 billion | 880,727 |
| TOTAL GREAT BRITAIN | £2.944 trillion | 10.02 million |
Key points out that Government data shows average pensioner incomes in retirement are currently £20,120 rising to £29,170 for couples and could be substantially enhanced by making use of unencumbered equity sitting with these older homeowners..
This property wealth can also be put to work supporting children and grandchildren with deposits to get on the property ladder- average first-time buyer deposits are around £61,090 – and give a welcome boost to the property market.