New research suggests householders currently aged 55 or over will account for more than three million transactions.
Over a third of homeowners aged over 55 are planning to play the property market in their retirement.
Research by Prudential has found that 37% intend to make at least one more property purchase in their lifetime. This means that over three million property transactions worth over £775 billion will involve those approaching or in retirement.
But this rush for bricks and mortar isn’t a result of the new pension freedoms. Only 14% of those surveyed say their plans are a result of the fact they can now access the capital in their pension pot.
“There was a lot of speculation that the pension freedoms would spark a rush of over-55s investing in buy-to-let property as a means of generating income in retirement,” says Stan Russell, retirement expert at Prudential. “However, our research suggest that this hasn’t yet been the case.”
Investing and downsizing
[SPOTLIGHT]Buy-to-let investment remains a popular choice for retirement income though with 18% of the over-55s who plan to buy a property saying they wouldn’t live in it, whether it's a buy-to-let investment, holiday home or even a home for their relatives.
However, the main reason people are planning to buy property is to downsize. A whopping 43% of respondents listed this as the main reason they would be buying a property again.
“Using money raised from a property sale could prove to be a helpful boost to retirement income for some,” says Russell. “But it’s no substitute for starting to save as early as possible to prepare for eventual retirement.”
Research from Prudential last year picked out Cornwall as the nation's downsizing hotspot, with Arun in West Sussex and North Somerset also proving popular. It found that around 2.5 million people are looking to downsize when they retire. For more read Cornwall is downsizing hotspot.
The buying bug
The vast majority of older people surveyed see the next purchase as their last one, with 83% saying it will be their final property deal. However, 11% clearly have the buying buy, suggesting they will probably buy again in the future.
A third of over-55s re-entering the property market are doing so in order to move somewhere more suitable for older people, while 21% said they wanted to live in a quieter area.
Compare mortgages with loveMONEY