A third of over-55s in the UK plan to invest in property
Insurance and pension services provider Prudential revealed today that its latest survey had shown that 37 percent of UK homeowners over the age of 55 are planning to purchase at least one more property.
This equates to a total investment of some £775 billion by Britain’s older homeowners, spread over more than three million transactions.
Indeed, 11 percent of those asked said that they will invest in more than one property.
Significantly, 18 percent of would-be buyers said they will either purchase holiday homes, homes for relatives, buy-to-let properties or development properties, as opposed to seeking a new residence for themselves.
“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. However our research suggests that this hasn’t yet been the case,” said Stan Russell, retirement expert at Prudential.
“Using money raised from a property sale could prove to be a helpful boost to retirement income for some. But it’s no substitute for starting to save as early as possible to prepare for eventual retirement.”
The survey found that 43 percent of Britain’s over-55 homeowners want to buy in order to downsize, which would help free up some cash for their retirement, while 29 percent said that they are planning to buy more expensive homes.
In terms of price, the average maximum across the over 55 segment was logged at £250,000, though 20 percent said they are willing to spend £350,000 or more.