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‘Mortgage-free OAPs are sitting on major assets’

Analysis of Office for National Statistics data by Lancashire-based national advisory firm Key Retirement Solutions revealed that 4.69m over-65s owned a property outright.

Dean Mirfin, group director of KRS, said the national rise in property values for the over-65s amounted to an average of £1120 each and had contributed to the housing market recovery.

However the overall growth in property values for the over-65s masked a decline across several UK regions.

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Equity values for retired homeowners differed drastically between the regions. Average property values increased by £9362 in London but fell by £1708 in Scotland, £1663 in Yorkshire and Humberside, and by £660 in the northeast of England.

Retired homeowners in the southwest and southeast of England and Wales experienced a rise in values between £1100 and £2000.

Mr Mirfin said that despite falls in equity values in some regions, the overall rise “showed the housing market recovery was taking hold”.

He added: “When other sources of retirement income are under pressure, with the Bank of England ruling out rate rises until 2016 at the earliest, it is encouraging that all pensioner homeowners are literally sitting on a major asset.

“Whatever the trend in the housing market, even for regions experiencing falls, over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages.”

Background

KRS has launched an apprenticeship scheme as part of continued expansion plans which saw it take on 100 new staff nationally last year.

Chief executive Colin Taylor, said: “We are committed to apprenticeships and they will be an integral part of our business.

“We want to fill some of our vacancies through young people, and we want to work with them from the early stages when we can help them develop in a way that benefits our business and helps them grow into work and a satisfying career.”