Over-65S Property Wealth Hits £775Bn

[kilroy]

If house prices have doubled over 10 years and stripping out inflation, I suspect that around 40% of this housing wealth is a result of increased public spending over the past decade. I think the government know this, and by letting house prices drop, younger generations (taxpayers) will have lower housing costs thus more disposable income that can be taxed. Government needs more tax and cannot afford for the housing wealth to be frittered away on luxurious retirements. Discuss.

http://www.mortgagesolutions-online.com/mortgage-solutions/news/1732186/over-65s-property-wealth-hits-gbp775bn?WT.rss_f=Home&WT.rss_a=Over-65s+property+wealth+hits+%C2%A3775bn

Over-65s property wealth hits £775bn

Mortgage Solutions | 09 Sep 2010 | 11:59

Kay McLellan

Retired homeowners are sitting on total property wealth owned outright of up to £775bn, research shows, with average gains in value of £7.94bn in the past three months.

Research by Key Retirement Solutions has revealed that, despite the ongoing fragility of the housing market, the average homeowner aged over 65 saw their property increase £1717 in value in the last three months.

However, there were distinct regional variations. Retired homeowners in Scotland were the biggest winners, gaining an average of £12,353, while those in the South West gained £3713.

By comparison, retirees in North England saw the value of their homes drop £5484 and those in the North West saw a fall of £1643. Nevertheless, those in the North West are most likely to own their homes outright.

Nearly a third of property equity is held by pensioners in London and the South East, according to Key Retirement's figures, with London pensioners owning more than £125bn-worth of housing. Those in the South East own £124.9bn of property without mortgages.

However, property wealth is spread throughout Great Britain with retired homeowners in the South West holding 15.38% of the total housing equity stock and a total of £119bn.

Dean Mirfin, group director at Key Retirement Solutions, said: "Over-65 homeowners generally own their houses outright and have not been as affected as the rest of the market. Even those pensioners who have seen prices fall are still literally sitting on riches."

He said: "Retired homeowners' property wealth represents an increasingly important potential source of income particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates."

[corevalue]

If house prices have doubled over 10 years and stripping out inflation, I suspect that around 40% of this housing wealth is a result of increased public spending over the past decade. I think the government know this, and by letting house prices drop, younger generations (taxpayers) will have lower housing costs thus more disposable income that can be taxed. Government needs more tax and cannot afford for the housing wealth to be frittered away on luxurious retirements. Discuss.

http://www.mortgages...its+%C2%A3775bn

Over-65s property wealth hits £775bn

Mortgage Solutions | 09 Sep 2010 | 11:59

Kay McLellan

Retired homeowners are sitting on total property wealth owned outright of up to £775bn, research shows, with average gains in value of £7.94bn in the past three months.

Research by Key Retirement Solutions has revealed that, despite the ongoing fragility of the housing market, the average homeowner aged over 65 saw their property increase £1717 in value in the last three months.

However, there were distinct regional variations. Retired homeowners in Scotland were the biggest winners, gaining an average of £12,353, while those in the South West gained £3713.

By comparison, retirees in North England saw the value of their homes drop £5484 and those in the North West saw a fall of £1643. Nevertheless, those in the North West are most likely to own their homes outright.

Nearly a third of property equity is held by pensioners in London and the South East, according to Key Retirement's figures, with London pensioners owning more than £125bn-worth of housing. Those in the South East own £124.9bn of property without mortgages.

However, property wealth is spread throughout Great Britain with retired homeowners in the South West holding 15.38% of the total housing equity stock and a total of £119bn.

Dean Mirfin, group director at Key Retirement Solutions, said: "Over-65 homeowners generally own their houses outright and have not been as affected as the rest of the market. Even those pensioners who have seen prices fall are still literally sitting on riches."

He said: "Retired homeowners' property wealth represents an increasingly important potential source of income particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates."

Does not compute. How the feck do you get income from a house you need to live in, apart from borrow against it? Sell up, downsize perhaps. Not all over-65's are living in mansions. A lot are in modest 2 1/2 bed semis.

[Snugglybear]

Does not compute. How the feck do you get income from a house you need to live in, apart from borrow against it? Sell up, downsize perhaps. Not all over-65's are living in mansions. A lot are in modest 2 1/2 bed semis.

And I don't know how many will downsize anyway. I suspect an awful lot are keeping their houses to sell to pay the fees when they finally need to move into a care home.

[corevalue]

Can't edit. I saw the point of that article, it's surrounded by ads for equity release schemes. BORROW MORE!

[campervanman]

If house prices have doubled over 10 years and stripping out inflation, I suspect that around 40% of this housing wealth is a result of increased public spending over the past decade. I think the government know this, and by letting house prices drop, younger generations (taxpayers) will have lower housing costs thus more disposable income that can be taxed. Government needs more tax and cannot afford for the housing wealth to be frittered away on luxurious retirements. Discuss.

http://www.mortgagesolutions-online.com/mortgage-solutions/news/1732186/over-65s-property-wealth-hits-gbp775bn?WT.rss_f=Home&WT.rss_a=Over-65s+property+wealth+hits+%C2%A3775bn

Over-65s property wealth hits £775bn

Mortgage Solutions | 09 Sep 2010 | 11:59

Kay McLellan

Retired homeowners are sitting on total property wealth owned outright of up to £775bn, research shows, with average gains in value of £7.94bn in the past three months.

Research by Key Retirement Solutions has revealed that, despite the ongoing fragility of the housing market, the average homeowner aged over 65 saw their property increase £1717 in value in the last three months.

However, there were distinct regional variations. Retired homeowners in Scotland were the biggest winners, gaining an average of £12,353, while those in the South West gained £3713.

By comparison, retirees in North England saw the value of their homes drop £5484 and those in the North West saw a fall of £1643. Nevertheless, those in the North West are most likely to own their homes outright.

Nearly a third of property equity is held by pensioners in London and the South East, according to Key Retirement's figures, with London pensioners owning more than £125bn-worth of housing. Those in the South East own £124.9bn of property without mortgages.

However, property wealth is spread throughout Great Britain with retired homeowners in the South West holding 15.38% of the total housing equity stock and a total of £119bn.

Dean Mirfin, group director at Key Retirement Solutions, said: "Over-65 homeowners generally own their houses outright and have not been as affected as the rest of the market. Even those pensioners who have seen prices fall are still literally sitting on riches."

He said: "Retired homeowners' property wealth represents an increasingly important potential source of income particularly when other sources of retirement income are under pressure from low interest rates, rising inflation and falling annuity rates."

Hmm, over 65's. That makes them pre boomers. And I thought we were supposed to be the only selfish and greedy ones.

[Tonkers]

Can't edit. I saw the point of that article, it's surrounded by ads for equity release schemes. BORROW MORE!

You are wealthy! So you should borrow!

It's insane isn't it.

[kilroy]

Hmm, over 65's. That makes them pre boomers. And I thought we were supposed to be the only selfish and greedy ones.

My point is it is equity that they don't use. Over 65s on't miss it if property is not their pensions, and if it is, tough t1tties. I am sure most over 65s would actually agree, unless they are selfaish and/or greedy.

[Mikhail Liebenstein]

There are all these stagnant pools of equity/cash lying around.

Pre-boomers and boomers homes. Banks holding cash etc.

Both will lose if rates rise. The banks will see more loans go bad and their margins cut, and if they can't make good new profitable loans then holding all that cash is just an interest cost they have to carry.

Edited September 10, 2010 by Mikhail Liebenstein