Property price growth has skyrocketed over past 23 years, study reveals
A new study into property wealth across the UK suggests that British homes have risen in value by an average of £7,000 per year since 1995.
The research, which highlights the stability of Britain’s property market over the past two decades and more, analysed homeowners aged 65 and over who had owned their properties for 20 years or more.
It found that today’s over-65s own property wealth worth approximately £1.09 trillion, while the average homeowner in this sub-category – who has owned their home for approximately 23 years – has seen their property increase in value by £159,000 during that time.
Homeowners in London and South East England enjoyed the strongest gains, at more than £14,000 a year, the report found.
However, long-term homeowners in all regions “recorded strong gains” over the period studied, it added.
Dean Mirfin, of financial planning firm Key Retirement, which carried out the research, said that the study provided solid proof of “the long-term strength of the housing market.”
“On average, over-65s are making nearly £7,000 annually from their homes – rising to more than £14,000 a year in London,” he said.
“Property wealth of more than £1 trillion enables pensioners who have paid off mortgages to generate returns which are making a huge contribution to their standard of living in retirement,” he added.