They have seen £9.24bn added to the value of their homes since the start of the year, earning the average pensioner more than £500 a month.

Those who own their homes outright have each gained by an average of £2,096 tax-free from their houses since the end of January taking their property wealth to a new record high.

Over the last six years, the total increase is around 21 per cent - £161bn.

This is worth around £39,000 on average for every older homeowner, according to financial specialists KeyRetirement.com.

Experts say the report highlights the growing importance of investment in homes for retirement planning.

A record amount of housing wealth was unlocked by homeowners aged 55 and over in 2015, with £1.61bn withdrawn through specialist equity release plans.

Lending was up by 16per cent on the 2014 figure as homeowners used lifetime mortgages and reversion plans to access cash from their homes, the Equity Release Council said. 

More than 22,500 deals were agreed for the year – the highest number since 2008 – and the value of borrowing now exceeds its pre-recession peak by a third. 

Lifetime mortgages, which allow borrowers to take out a loan against a property and only pay the interest on its sale, were the most popular form of borrowing, while reversion plans, which allow homeowners to sell part of their home but continue to live there, accounted for less than one per cent of deals agreed.

Dean Mirfin, of KeyRetirement.com said: “Property wealth is a huge asset for pensioners and is making a massive contribution to standards of living in retirement reflecting the success of investing in a home.

“The different housing markets around the country show prices do vary but the long-term story is that property wealth is still growing as highlighted by our research which began in 2010.

“The contrast between the average £76,000 that can be generated from property wealth via equity release and the value of average pension savings underlines how vital it is to seek independent expert advice on how to use housing wealth.”

The index reveals major differences in the property market across the country with six regions - London, the South East, Wales, the South West, East Anglia and the East Midlands still seeing strong growth. 

Of the 11 areas of Great Britain monitored by Key’s index, five - Scotland, Yorkshire & Humberside, the North East, the West Midlands and the North West - recorded price falls.

The over-65s in London have seen property price rises of nearly £21,000 – around 10 times the national average – since the start of the year while Scottish pensioners have suffered losses of more than £8,500.

Older homeowners in the North West are most likely to own their home outright. The analysis shows 671,000 own their homes without mortgages compared with 656,000 in the South East.

The figures in the report are based on data from the Office of National Statistics Family Spending Report (2014), the Land Registry House Price Index, Registers of Scotland House Price Statistics and ICM (2014) and Key Retirement’s UK Equity Release Market Monitor.

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