Retirement Advantage comments on Halifax house price data and suggests downsizers might hold the key
Given the amount of property potentially coming up for sale, this will have a significant impact on supply and demand, and could be the kick-start the property market will need to keep buoyant.
The latest Halifax House Price Index1 shows house prices in the three months to May 2017 were 0.2% lower than in the three months to February 2017. Retirement Advantage suggests the over 50s who are planning to retire and downsize may hold the key to the UKs future property market prosperity.
The firm recently carried out research among the over 50s2 which revealed that a quarter (26%) plan to move house when they retire. Of these, two thirds (62%) plan to downsize, while four in ten (38%) will move to a different area. Given over 50s hold more than two thirds of the UK’s overall property wealth, worth around £2,291 billion3, their plans will have a significant impact on the housing market.
Andrew Tully, pensions technical director at Retirement Advantage, said: ‘Our research suggests that the over 50s may well hold the key to the property market’s future prosperity. Driven by the need to improve retirement incomes or the wish to help children with house deposits, one in four future retirees have plans to move.
‘Given the amount of property potentially coming up for sale, this will have a significant impact on supply and demand, and could be the kick-start the property market will need to keep buoyant.’
Plans to move are highest in London (32%), followed by Yorkshire (30%) and East Midlands, South West and South East (all 29%). The majority (63%) of those looking to move to a smaller property are doing so to generate cash for living expenses in retirement, while one in ten (10%) want to help children with house deposits.
- Survey conducted by Censuswide between 20.03.17 and 22.03.17 of 1,013 over 50 year olds who are yet to retire.
- Statistics taken from Saga and Cebr report ‘Savings and the over 50s’ published in December 2015: http://www.saga.co.uk/saga/media/Content%20Editors%20Library/Newsroom/2016/SIS/AMENDED%20DECSagaSavingstheover50s24ppA4LOW%20RES%20FINAL.pdf