Over-65s property wealth has increased by more than £561 a month over the past three months, according to the latest index from Key.

The equity release lender found that the total property wealth of over-65s who have cleared their mortgages increased by £8.436 billion over the past three months to £1.232 trillion, fuelled by the stamp duty holiday and other measures to stimulate the market.

This equates to an average gain of £1,685 each, or £561 a month.

Since Key started collecting the data in 2010 homeowners have seen the value of their property equity grown by 58%, which is an increase of £452bn or £90,420 per household.

While pensioner equity has increased significantly, over-65s have not seen the same boost to their incomes with the average pensioner income only rising £12 to £331 per week over the last eleven years.  

Under-75s have average weekly incomes of £370 after housing costs compared with £302 for over-75s.

The only region to see property values drop in the past three months was the South West where average prices are around £738 lower in the past three months.  

The South East accounts for a fifth of all property wealth held by the over-65s with the South West and East Anglia accounting for nearly 29% of all property wealth held by over-65s.

Will Hale, CEO at Key said: “Sitting in a quarter of a million pound home unable to keep the heating on or meet other day-to-day living costs makes no sense.  

“Today’s modern equity release products can help people access some of the value tied up in their properties to address these issues and then through flexible features enable them to manage their borrowing by choosing to make ad hoc capital repayments or to service the interest if they wish.”