The value of property wealth owned by those aged 65 and over has reached £2.944trn, Key Later Life Finance has found.

The equity release adviser’s data revealed that more than 10 million over 65s own their properties outright without a mortgage.

However, the firm stated that the value of these properties could potentially be put towards supporting their retirement.

Key revealed that 37% of the property wealth held by over 65s is concentrated in London and the south east, with over 65s in these regions holding £520bn and £582bn in the value of their homes respectively.

The firm noted that average income for a pensioner currently sits at £20,120 a year, rising to £29,170 for couples.

It went on to state that these figures could be "substantially enhanced" if older homeowners make use of unencumbered equity.

Key added that this property wealth can also be put to work supporting children and grandchildren with deposits to get on the property ladder, providing a "welcome boost" to the property market.

Chief executive officer at Key, Will Hale, said: "Over 65s have considerable wealth tied up in their homes and are literally sitting on money that could give them a more comfortable or fulfilling retirement. Alternatively, this wealth could be used to provide a living inheritance and offer family members cash at a point in their lives when they need it most, for example when children or grandchildren are looking to get on the housing ladder.

"Lifetime mortgages enable money to be drawn down tax-free which can be a sensible way for over 65s to fund retirement needs or to make gifts in a tax efficient way. However, everyone’s circumstances are different and it is important that these products, which do have some downside risks, are accompanied by specialist advice."

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