Retired homeowners have seen their property wealth grow by more than £33 billion in the past six months – earning the average pensioner nearly £1,200 a month.

Research from Key Retirement shows that pensioners who own their homes outright have earned an average of £7,117 each from their homes in the past six months, taking their property wealth to a new record high.

The growth in property prices is helping to drive the equity release market, with a record high of £1.38 billion released last year and the average customer taking around £64,800 from their home.

In the five years since Key started monitoring the housing wealth of the over-65s, in January 2010, total pensioner property wealth has increased by £81.27 billion – the equivalent of £17,323 each. Its Pensioner Property Equity Index shows over-65 homeowners now own property wealth of £861.188 billion outright as house prices across almost all of the UK rose.

Retired homeowners in London were the biggest winners gaining an average of more than £20,675 each in the past six months, while homeowners in the South East are more than £14,123 better off and pensioners in East Anglia are £13,105 better off.

Only retired homeowners in the North East saw a fall in housing wealth with average losses of £581 in the six months.

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