Nearly two in five homeowners over the age of 55 are planning at least one more property purchase in their lives.
According to research by Prudential, future dealings in the property market by this demographic will account for more than three million property transactions, worth a total of more than £775bn.
Alongside this, 18 per cent of those planning a property deal say they will not be buying a home to live in, but will be buying second homes, buy-to-let properties, development properties or homes for their relatives.
In terms of the value of the property deals being considered, the poll of 1,157 adults aged 45-plus conducted back in July, including 645 aged over 55, found the average maximum purchase price is more than £250,000.
One in five said they are willing to spend £350,000 or more.
Of those currently planning a property deal, 83 per cent say that their next purchase is likely to be their last.
However, not all of the older property dealers will be last-time-buyers as one in 10 said they would probably buy again in the future.
Contrary to some predictions, Stan Russell, retirement expert at Prudential, said the scale of property purchase involving over 55s is not fuelled solely by the new pension freedoms.
Only one in seven said their plans have come about as a result of the pension rule changes and just one in 10 think the changes make them more likely to buy a property in the future.
Mr Russell said: “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.”
The Prudential’s research concluded, the biggest motivation for over-55s planning a property deal is to downsize – more than two in five said this was the reason.
However, the survey found an equal split between those who expected to buy a property that’s more expensive than their current home, and those who plan to buy a cheaper property and bank some cash.
Around 29 per cent expect to spend more on their next property while 27 per cent say they’ll spend less.
Mr Russell added: “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.”
Prudential’s research comes after yesterday the Association of British Insurer’s figures for April, May and June showed £2.3bn of pensions was used to buy nearly 37,500 regular income products - either annuities or income drawdown products.
The research also revealed £1.3bn has been paid out in cash lump sums, with an average payment size of just under £15,000.
