Retired homeowners have earned £3,500 a month from their houses in the three months to the end of August as total property wealth hit a record high.
Analysis from Key Retirement shows that total property wealth owned by over-65s who have paid off their mortgages grew to a record 1.1tn in August.
More than £47.2bn has been added to the property wealth of over-65 homeowners in the UK over the three months as the property market recovered across all regions.
Dean Mirfin, chief product officer at Key Retirement, said: “The strength of the housing market over the three months has significantly boosted property wealth for pensioners.
“Prices may not continue to grow as fast but pensioners who have paid off mortgages can still rely on tax-free returns no matter what happens in the short and medium term.”
Key’s Pensioner Property Equity Index shows over-65s in the North West are most likely to own their property outright, with 671,000 having paid off mortgages compared with 656,000 in the South East.
Mirfin added: “The average homeowner is releasing through equity release the equivalent of the gains made since 2010 and property wealth is having a dramatic effect on the standards of retirement living for many thousands across the UK.”