Rising property prices have seen British pensioners’ home values rise by £41.5bn in the first three months of this year, according to Homewise.
The Homewise Pensioner Property Equity Index found the UK’s 6.3m retired home owners have gained an average of £6,553 in property values since the start of the year.
It says over the past year the average home owning pensioner has gained an average of £20,017 in the value of their property with the collective worth of British pensioners’ homes now standing at around £1.252tn.
The retirement finance and property specialist says these figures contrast with the fact that the average disposable income of a single pensioner remains “perilously low”.
Homewise managing director Mark Neal says: “Many people will see owning your home outright – as many pensioners do – as a great way to take advantage of the property boom. But unfortunately equity gains do not mean a thing if you have not got the income to make ends meet.
“We also know that many pensioners are struggling in poor quality accommodation and either can’t afford to renovate or simply can’t face the prospect of letting the builders in. There are however specialist products which are designed to help over 65s combat these concerns and take advantage of the buoyant property market.”