The Index also found that a further £43 billion is held in Scotland as the housing market begins to show signs of stabilising following two years of decline.
The Index also shows modest gains for homeowners aged over 65 in Wales, the West Midlands, London and the North West. In Wales, the over-65s saw values rise by £3,448, followed by London’s over-65s who gained £3,296, while in the West Midlands retired homeowners gained £2,789 and the North West saw increases of £818.
Homeowners in Scotland aged 65 and over have retained £43 billion of equity in their property as and saw modest gains in the second quarter of 2009, with an average increase in property values of £5,235 since March, although the total value of property equity for the over-65s is still more than £3 billion lower than it was a year ago.
The picture across England and Wales as a whole is one of stabilisation, with property equity for the over-65s falling by less than £43 since February – the lowest fall recorded by the Prudential Equity release Index. This contrasts sharply with the period between October 2008 and February 2009 when property equity in England and Wales for homeowners aged 65 and above dropped by an average of £21,377.
Keith Haggart, director of lifetime mortgages at Prudential, said: “A good many pensioners will be cheered by the news that property values appear to be stabilising and in some parts of the country are even increasing. This could bode very well for people considering using their home as an asset to boost retirement income.
“For many people, selling up and downsizing isn’t an especially attractive option, and they don’t want to face the emotional wrench of moving house. Equity release has an important role to play in providing retirement funds particularly when other sources of income are under pressure.”
