3 million over fifties plan to relocate following pandemic

New research from Legal & General Retail Retirement has found that 3 million people in the UK aged over 50 are considering relocating, as a direct result of Covid-19¹.

In 2020, the Office for National Statistics² revealed that people of retirement age in England were already leaving major urban areas and instead moving to rural areas, locations by the coast or to areas of ‘outstanding natural beauty’. The data demonstrated that Dorset, Shropshire and Wiltshire were ‘retirement migration hotspots’, while England’s largest cities saw net outflows of retirement age residents, with London, Birmingham and Bristol seeing the largest number of exits.

Nearly a year on, Legal & General’s research has found that the pandemic has influenced some over 50s to plan a move after a year of lockdowns. Over 50s want to relocate to somewhere that offers a better quality of life (7%), to move close to friends and family (4%) or to live abroad (3%).

When planning a move, many over 50s consider how the value of their current home plays a role in their long-term plans. 1.3 million pre-retirees over 50 (9%) see themselves as more likely to turn to their property wealth to fund their lifestyle than before the pandemic. In instances where people are relocating, they may downsize to free up property wealth. However, some may already having chosen to access the equity in their homes via a lifetime mortgage, which they may be able to port over to a new property in a different location.

Key things to consider before relocating to a new area:

• Think about how you are currently using your home equity – people who have already taken advantage of a lifetime mortgage can choose to move but there is a process to be mindful of and you may choose to take professional financial advice first. You may be able to transfer your existing equity release to your new property if it meets your provider’s lending criteria. If you choose to relocate to a less expensive property you may also need to repay some costs to your provider, but this could be covered by savings made from the sale of your existing home.
• Make sure your new home is as future proof as possible – it’s important to think carefully about the type of property you choose and whether it will suit you for the long term. Is it accessible or could it be easily renovated to meet your needs in the future? For people who need to update or adapt their home a retirement interest-only mortgage or lifetime mortgage may be options to consider. Consider whether local transport links will work for you now and in the future.
• Understand how a new area might impact on your living costs – it’s important to consider any difference in living costs between areas and whether, over-all, you are likely to spend more money, or save money, in your new location.