Pensioners see the value of their homes go up in East Anglia by more than £206,000 over 18 years

PUBLISHED: 08:10 01 June 2018 | UPDATED: 08:26 01 June 2018

Pic: www.gettyimages.co.uk

Pic: www.gettyimages.co.uk

The average retired homeowner in East Anglia has seen their property go up in value by more than £206,000 over 18 years - the equivelant of £11,467 a year, a new report reveals today.

This is higher than the national average for the over 65s who have been in the same property for 23 years but only seen it go up by £159,000 on average - equating to £7,000 tax free gains a year.

Although in London, the over 65s have been the biggest winners with property prices soaring by £394,944 over the 27 years they have, on average, owned their homes - equating to £14,257 a year.

All areas of the country recorded strong gains underlining the long-term investment success of home ownership and the growing importance of property wealth for retirement planning, states the report.

And the total property wealth owned by over-65s in Britain who have paid off their mortgages is near a record high of £1.09 trillion, Key’s Pensioner Property Equity Index report states.

In East Anglia, the estimated property equity in homes owned outright by people aged 65 and over (April 2018) is £137.547 billion with 12.6 per cent of all property equity in the region belonging to retired people - equating to 472,000 households.

The report outlines how those gains are helping to give retired people a big boost in the quality of life - with a new generation of over 65s wanting to do more and travel.

Martin Baum, group residential manager at Arnolds Keys with branches across Norfolk, said they as estate agents were seeing more and more retired people opting to downsize from larger homes, using the funds for all kinds of reasons from buying abroad to helping their family get on the property ladder.

“Rather than the bank of Mum and Dad, it’s the bank of Grandma and Grandad - many over 65s we see are releasing the equity they have amassed in their home to help young members in their family get on the property ladder. They are in the advantageous situation of having lived in the same property and paid off the mortgage.”

Nick Taylor, of Hadley Taylor, and chairman of the NDAEA, Norwich & District Association of Estate Agents, said: “According to the Nationwide, property prices in East Anglia have risen by 180 per cent since 2000 so it is very likely that thousands of pensioners have seen their property rise in value by £200,000 during the last 18 years.

“I don’t think there is a trend to downsize, however, as most pensioners tend to stay put in the family house and would rather take out equity release if they need extra cash rather than move to something smaller. Will we see property prices rise by another 180 per cent over the next 18 years? Absolutely not.”

Tony Wenham, 64, who lives in an end terraced house in Newton Flotman, bought his home about 30 years ago for around £28,000. Around 25 years ago, he extended it, costing £15,000 and now the four bedroom, two bathroom, three reception home is worth around £300,000.

“It’s hard to imagine buying a house for £28,000 now but look how prices have risen in that time. I’m planning my retirement and haven’t considered releasing equity from my home but of course, it’s an option.”

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