The average pensioner's property wealth has risen by nearly £900 a month over the past three months, says the latest Key Retirement Pensioner Property Index.

Collectively that means retired homeowner wealth increased by more than £12.5 billion over that period.

Given that many pensioners own their homes outright, they are seeing the biggest gains from the buoyant housing market.

Since 2010 total pensioner property wealth has increased by 12% or £93.85 billion. That’s an average of £20,000 for every pensioner homeowner.

London comes out on top

No-one will be surprised to hear that retired homeowners in London have made the most with an average gain of £16,260 in the past three months alone. In contrast, pensioners in Wales have seen an average fall of £2,230 over the same period.

Region

Average change in value per retired homeowner (Feb-May 2015)

Combined change in value for all retired homeowner in area

London

£16,261

£5.951 billion

Scotland

£8,653

£2.434 billion

Yorkshire/Humberside

£4,063

£1.172 billion

South West

£2,415

£1.513 billion

East Midlands

£2,049

£883.528 million

South East

£2,006

£1.315 billion

East Anglia

£540

£254.88 million

North East

£400

£110 million

West Midlands

-£246

-£88.166 million

North West

-£560

-£375.76 million

Wales

-£2,231

-£590.322 million

Great Britain average

+£2,680

£12.581 billion

[Related story: How much tax the average pensioner pays each year]

Owning your property outright

According to Key's research, it's older homeowners in the North West who are most likely to own their home outright.

 

Region

Number of households in the region owned outright by people aged 65+

North West

671,100

South East

656,000

South West

626,600

East Anglia

472,000

East Midlands

431,200

London

366,000

West Midlands

358,400

Yorks/Humbs

288,600

Scotland

282,000

North East

275,000

Wales

264,600

Great Britain

4,691,500

Cashing in on your property

Clearly, many pensioners are sitting on increasingly valuable property assets.

As a nation we need to start considering our homes when working out our retirement income, according to Key Retirement.

“No matter what happens in the property market homeowners will always have a major asset which should be considered as part of retirement planning. Innovation in the equity release market and the launch of pension freedoms are opening up more ways for homeowners to use their property wealth," said Dean Mirfin, technical director at Key Retirement.

Make your money work harder: compare savings and Isa rates