Growth in UK house prices has seen over-65 homeowners’ property wealth hit a new record of £1.072trn, according to new analysis by Key Retirement.

The study by the over-55s financial specialist shows that total over-65 homeowner property wealth has increased by almost £7.7bn since November.

The long-term success story of property investment is underlined by Key’s index. Since the group started analysing over-65s housing wealth in 2010, retired homeowners have seen growth of 37% – or £290bn – which is worth around £66,000 on average for every homeowner. Owning a home has been worth around £9,400 a year for over-65s.

Key’s Pensioner Property Equity Index shows only over-65s in London and Scotland saw the value of their total property wealth decline in the past three months. However, retired homeowners in London still own £177bn of property wealth.

Retired homeowners in East Anglia saw the biggest growth in the past three months, and are now £4,265 better off while over-65s in the South East, Yorkshire & Humberside and the North East all saw gains of more than £3,400 each.

The ongoing strength of the housing market highlights how property wealth can make a major contribution to retirement standards of living as the equity release market expands, according to Dean Mirfin, technical director at Key Retirement.

He said: “Property investment has consistently delivered for retired homeowners over the past seven years and the £1,700 gained over the past three months underlines its success story.

“During a period of historically low interest rates and investment market volatility, pensioners who have paid off mortgages have been able to rely on tax-free returns from their homes no matter what the short-term ups and downs have been.

“The average payouts taken through equity release of £78,000 are enabling retired homeowners to address a wide range of financial issues, including helping family and/or friends, to paying for holidays and home improvements. Repaying debt is also a major reason for releasing equity.”