Nearly three quarters (73 per cent) of the UK’s 10.4 million pensioners own their own home, although more than a quarter (26 per cent) expect to sell their property to downsize, according to new research.
Four in every five retired homeowners who expect to sell are planning to buy another property. This is equivalent to around one million homes being bought and sold by pensioners.
The majority (73 per cent) of retirees who plan to sell and buy another property want to move into a smaller and less expensive home. On average, they expect downsizing to raise as much as £62,000.
Nearly a quarter (23 per cent) plan to use the money raised to boost their income in retirement, 13 per cent will pay off debts and eight per cent say they’ll use the money to help with everyday living costs.
Prudential’s research also shows that over one in five retired homeowners still have an outstanding mortgage, with average monthly payments of £254.
The convenience of running a smaller home was the most commonly stated motivation for downsizing.
Staying on the property ladder remains the overwhelming preference among retired homeowners. Just six per cent of pensioners planning to sell their home intend to move into specialist retirement accommodation, while only four per cent expect to move into a rental property.