The growth of London's millionaire property pensioners

The growth of London's millionaire property pensioners [Photo: apomares via iStock]

The quick rises we've seen in house prices over the course of the last decade have helped to bring about a greater number of London-based property millionaire pensioners, according to a new report released about the differences between the old and young in the capital. 

While young professionals, often part of 'generation rent', are paying an average of almost £1,600 per month in rent to landlords, older people appear to be holding onto their properties for longer, reaping the benefits of buying when homes were much cheaper and the price rises that have since followed. 

In the report from data management company CACI, it was revealed that London now has more than 50,000 people over the age of 65 resident in the city who have homes worth at least a million pounds. It means that this age group now have a collective property fortune of nearly £130 billion. 

Across the UK, pensioners are one of the biggest groups of property owners. While there has been a fall in young people owning homes in recent years, the continued rise in prices has meant people over the age of 65 own a collective £926 billion worth of property nationwide. 

The largest number of property millionaire pensioners can be found in Kensington and Chelsea at present, where there are more than 10,000 property millionaire pensioners. They represent a high proportion of 6.3 per cent of the overall population of the borough. This is followed in the list by Westminster, where there are more than 7,000 older people with million pound homes, while Camden comes in third with a similar number. 

However, while these are the areas that have the highest concentration of older people with expensive homes, the report shows that property millionaires over the age of 65 are spread right across the capital. In fact, only two boroughs in the whole of London - Barking and Dagenham - do not have any over 65s with houses worth a million pounds.