Over 50s staying put

8 December 2021

The over-50s are less likely to relocate as a result of the pandemic, new research from OneFamily has shown, which could see an increase in use of equity release.

According to the financial provider, 76% of over-50s are now more likely to stay in their current home for life.

Having had a garden during lockdown was a major factor for more than half (53%), while 26% said more time indoors had made them realise how much they love their home.

Meanwhile, one in four (23%) are keen on keeping space at home for family to visit, while a fifth (21%) want to remain in their current house in order to pass it on to family in the future.

OneFamily said finances also play a role, with high house prices and the hassle and cost of moving also acting as a deterrent.

Of the 60% of over-50s who said they are unlikely to move house any time soon, a quarter said they would consider taking out equity release to free up cash from the value of their property. More than one in six (17%) said they would rather spend money to make their house more accessible than relocate, with the same proportion reluctant to move to a smaller warden-assisted flat or care home in old age.

Paul Bridgwater, head of products at OneFamily, said: “One side effect of the pandemic is that homeowners have grown more attached to where they are living. Whether that’s down to having appreciated access to green space, or more intangible factors like family ties and memories attached to a home, our research suggests people seem to be more reluctant to look into downsizing or relocating than they were before.

“But staying in a forever home can mean extra expenses. As such, we may be set to see a rise in equity release uptake to fund renovations and adjustments to improve or adapt homes to allow for the more complex needs of later life.

“Taking out equity release is a decision to be weighed up carefully with input from family members. It won’t be the right solution for everyone but if this trend for staying in the family home continues to grow, advisers will play a key role in helping over-50s explore their options and make the right choices.”

[Main image: anastasiia-chepinska-mB__zsotOqY-unsplash]

Professional Paraplanner