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Retirees have £692bn worth of equity
13 November 2008
New research released today (November 12th) has shown that UK homeowners aged 65 and over have a combined £692.06 billion worth of equity in their homes.The findings, published in the latest equity release index by Prudential, show that the Britons in the age bracket have lost £34.37 billion from the value of their properties between May and August this year.
This equates to each person losing £9,119 on average, but it would appear that the nation's pensioners are well prepared to ride out the effects of the current housing market slump.
Keith Haggart, director of lifetime mortgages at Prudential, said: "Every homeowner is being affected by falling property prices, but it's important to remember that many people, especially retired homeowners, bought their homes years ago and have benefited from growth in the housing market.
"Even in this falling market, the vast majority of retired homeowners still have considerable wealth tied-up in their properties."
As a result, the vast majority of pensioners are unlikely to be haunted by the threat of negative equity and may use their free time to expand their properties with a new conservatory, for example.
Prudential has operations in over 12 countries and boasts over 21 million customers worldwide.
