At Austin property Services, we deal with a wide range of clients, including households of all ages. The local area lends itself to all sorts of families, professionals, couples and individuals.
We know many people in the golden years of life enjoy the pace of what is on offer, and the climate is very welcoming.
Therefore, a recent study which indicates the value of property owned by people aged 65 or older might be interesting to many people.
If you are looking to make a move in, out or around the local area, we are here to assist you.
Property value has risen of late
According to figures published by independent equity release adviser Kay, the over-65 population in the UK owns property worth £1.232 trillion. There has been a significant increase of late, with the value rising by an average of £561 per month, over the past three months.
Compared to the over-65 homeowners in 2010, there has been growth of 58%. This represents more than £452 billion, which is an average of £90,420 per household in the past 11 years.
However, when it comes to income increases, pensioners haven’t fared as well. Since 2010, there has only been a rise of £12 to £331 per week when it comes to average pensioner income. For people aged over 75, the average weekly income after housing costs is £302.
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The total property wealth of people over 65 years’ old is valued at £1.232 trillion, and this has risen by £8,436 billion in the past 3 months. This equates to an average rise of £1,685 per household.
In East Anglia, there has been a rise of £10,000.
In Wales, the rise has been £8,300.
The only location which has experienced a fall in property values is the South West, having fallen by an average of £738 in the past three months. The South West (and East Anglia) accounts for close to 29% of all property wealth held by people older than 65.
Will Hale, CEO at Key, comments: “Over the last three months, the property market has been buoyant – spurred on by the extension of the Stamp Duty Holiday and the launch of Government guarantees for over 95% LTV mortgages. That said, the market performance over the last eleven years has generally been positive and over-65s homeowners seen their property wealth increase by an average of £90,420 over the period. This puts into stark contrast the increase in average weekly pension income which jumped just £12 between 2010 and 2020. The retirement ambitions and needs of today’s over-65s as well as inflation make this increase seem even smaller and highlights how important it is for people to consider all their assets at retirement.”
Will Hale concluded by saying; “Sitting in a quarter of a million pound home unable to keep the heating on or meet other day-to-day living costs makes no sense. Today’s modern equity release products can help people access some of the value tied up in their properties to address these issues and then through flexible features enable them to manage their borrowing by choosing to make ad hoc capital repayments or to service the interest if they wish.”