Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details. Many UK teams now handle this with dedicated property inventory software.

Pension Shortfalls Highlight Growing Role of Property Wealth in Retirement

A decline in final salary and other defined benefit (DB) pension schemes is leading to property wealth becoming a more significant part of retirement planning, according to Key Retirement, an equity release specialist. The group estimates that over-60s in the UK hold £2.92 trillion in residential property wealth, which is around three times the total market value of all defined contribution (DC) pension assets in the UK, estimated at £950 billion.

Key Retirement reports that around 59% of over-60s currently have some DC pension assets, with the median amount held at £102,000. In comparison, average house prices are around £270,000. Additionally, about a quarter of over-60s have DC pension funds of less than £25,000.

Despite the significant gap between property and pension wealth among older people, equity release lending is currently declining. Figures from the Equity Release Council show that UK equity release lending dropped by 9% quarter-on-quarter to £574 million in Q1 2026, marking a 14% year-on-year decline.

David Burrowes, chair of the Equity Release Council, attributed the decline in activity to macroeconomic factors, including uncertainty in the UK and global economies and higher interest rates. He noted that while enquiries have increased, customers are taking more time to make decisions, and some are pausing their plans altogether. Burrowes suggested that an uplift in activity could occur as conditions stabilise and delayed cases complete.

For UK letting agents and inventory clerks, these trends highlight the growing importance of property assets in later life financial planning. As more over-60s consider their property wealth as part of their retirement strategy, there may be increased demand for advice and services related to property management and equity release.