The value of property held by the over-65s who have paid off their mortgage rose by an average of £6,000 in the last year, data from Key shows.

This means that there the total value of property owned by the over-65s comes to £1.12trn, up on the £1.13trn counted in the first quarter of this year.

Key adds that while nearly all regions saw price growth for this cohort of homeowners, those in London saw an average of £2,200 added each month, or nearly £26,000 over the year.

The South West saw the second-largest value gains, with the average change in home equity across the year coming in at £9,630.

The only region to see a fall was in the West Midlands. Here, the average property value for the over-65s fell by £235 over the year.

Key chief executive Will Hale comments: “The property market has suffered along with the rest of the economy during the coronavirus crisis and effectively shut down for months. Coupled with the ongoing political and economic uncertainty of the past few years, it has gone through a turbulent time.

“owever, property values seem to have remained relatively buoyant and with the current stamp duty exemption, we are likely to see continued interest from buyers.

“Against this backdrop, we find millions of over-65s who have repaid their mortgages and are sitting on considerable unencumbered property wealth but may find that their retirement funds are not quite as healthy as they hoped.

“It is vital to get specialist advice and consider all assets when it comes to planning your finances through retirement as making smart choices can significantly improve your standard of living throughout later life.”