According to Key Later Life Finance, over-65s collectively own £2.944tn in property wealth outright, with more than 10 million homeowners holding unencumbered equity that could be used to support their retirement planning.
The South East of England held the largest share, with over £582bn invested in homes, followed by London, where over £520bn is tied up in property.
Together, these two regions accounted for 37% of the total property wealth held by over-65s across Great Britain.
Other regions also held significant amounts of wealth, including the East of England with £358.6bn, the North West at £254bn, and the South West at £319.6bn.
The East Midlands held £196.4bn, Scotland £152.9bn, and the West Midlands £234.4bn.
Wales has £78.7bn, Yorkshire & The Humber £179.7bn, and the North East £67.6 bn.
This considerable wealth could be put to work enhancing the financial security of older homeowners, whose average pensioner incomes are currently £20,120 annually, rising to £29,170 for couples.
Moreover, this property wealth could help children and grandchildren with first-time buyer deposits, which average around £61,090, thus providing a welcome boost to the property market.
Will Hale, CEO at Key Advice, said: “Over-65s have considerable wealth tied up in their homes and are literally sitting on money that could give them a more comfortable or fulfilling retirement.
“Alternatively, this wealth could be used to provide a living inheritance and offer family members cash at a point in their lives when they need it most, for example when children or grandchildren are looking to get on the housing ladder.
“Lifetime mortgages enable money to be drawn down tax free which can be a sensible way for over-65s to fund retirement needs or to make gifts in a tax efficient way.
“However, everyone’s circumstances are different and it is important that these products, which do have some downside risks, are accompanied by specialist advice.”
