A new study by Paragon Bank has revealed that over 10% of Brits aged 55 and over are planning to move homes within the next year.
Despite these intentions, the research suggests various barriers are preventing this age group from taking the plunge, including a lack of suitable property, family commitments, and the lack of substantial financial benefits.
Paragon’s survey, which garnered responses from nearly 2,800 participants aged 55 or above, discovered that 15% are eager to relocate in the upcoming year.
However, approximately one in five respondents (17%) identified obstacles inhibiting their move. The main issues raised were a lack of alternative property (12%), a desire to keep the property within the family (7%), and insufficient financial incentives (5%).
The study also found that the leading reason behind the decision to move was to downsize, with 48% of those considering relocation citing this as their primary motivation.
Reducing house running costs was another factor for nearly a quarter (23%) of respondents, while an equivalent proportion expressed the desire to live closer to their families.
Additional common reasons included moving to a home more suited to physical needs, such as a bungalow (22%), and the aspiration to live in a more rural location (17%).
Derek Sprawling, savings director at Paragon Bank, commented on the findings: “Nearly three quarters of the UK’s housing equity sits with people aged 55 or over and often these properties are too large for their needs.
“Our research shows that 15% of people in this category are in the process or want to move home, with downsizing the most common reason.”
The research revealed a noticeable trend among those approaching retirement age, with 19% of those aged between 55 and 64 planning or considering a move. This figure drops to 16% for those aged between 65 and 74 and further to 12% for individuals aged between 75 and 84.
Among those intending to move, 84% plan to purchase another property outright, while 5% aim to relocate to a retirement village, and 3% plan to rent. Only 1% are considering moving in with their family.
The study also sheds light on respondents’ plans for the funds generated from selling their property: over half (53%) intend to reinvest in another property, 40% plan to put the proceeds into savings, 25% plan to use the funds to support their lifestyle, and 17% intend to gift part of the money to their family.
Sprawling concluded: “Those planning to move would use the proceeds from the sale to buy another home, although one in four would also use it to bolster their savings. People doing so should consider what savings accounts would offer them the best returns and not just rely on the rates offered by their incumbent banks.”
