If the pandemic has led you to reassess where you want to live, you’re not alone. Zoopla recently reported that demand for homes was twice as high as typically seen in the summer, with the rise of working from home and a requirement for more garden space driving the desire to relocate.
A recent report from Legal & General (L&G) found that three million people aged over 50 – that’s around 1 in 8 of that age group – now plan to relocate in retirement, as a direct result of the pandemic.
Read on to find out more, and for some tips if you’re thinking of moving to a new area.
Over-50s want a better quality of life and to be nearer to friends and family
New research from L&G has found that three million people in the UK aged over 50 are considering relocating, as a direct result of Covid-19.
Over-50s want to relocate to somewhere that offers a better quality of life, to move close to friends and family, or to live abroad (3%).
You recently read about how 2 in 5 over-45s expect to use the value of their home to pay for social care. L&G report that almost 1 in 10 retirees now see themselves as more likely to turn to their property wealth to fund their lifestyle than before the pandemic.
This might be by downsizing to release the value of their property or accessing the equity in their homes via a lifetime mortgage. They may then be able to “port” this mortgage over to a new property in a different location.
The L&G research backs up a 2020 Office for National Statistics report, which found that people of retirement age in England were already leaving major urban areas and moving to rural areas, locations by the coast or to areas of “outstanding natural beauty”.
The official data demonstrated that Dorset, Shropshire, and Wiltshire were “retirement migration hotspots” as some of England’s largest cities – including London, Birmingham, and Bristol – saw net outflows of retirement age residents.
3 questions to ask yourself before relocating to a new area
Could your living costs change?
If you’re thinking of relocating to a new area, it’s important to consider what the difference in living costs might be. Overall, are you likely to spend more or less money in your new location?
You may be nearer to family, but could your Council Tax and other bills be more expensive? Will it cost you more in travel costs when you decide to go on holiday or take a city break? Are your local pubs and restaurants more expensive?
Is your new home future-proof?
If you’re planning to relocate, think carefully about the type of property you want and whether it will suit you for the long term.
Choosing a beautiful old cottage might be great now, but could it leave you with accessibility issues in the future? How easily can a property be altered to meet your later-life needs?
You also need to think about whether the local transport links will be good enough in the future. You may drive now, but there is a good bus or train service for when you decide to take public transport?
How will you use the equity in your home?
Whether you plan to use any equity in your current home to fund your lifestyle, supplement your income, or fund your later-life care, deciding how to use this money is vital.
For example, if you are thinking of using a lifetime mortgage to raise money, you’ll need to make sure it’s portable and that you can transfer it to a new property if you move.
If you have a significant amount of equity in your home, taking professional advice could help you to make the most of this cash. We can help you ensure this money is used wisely, and that you don’t pay any more tax than is absolutely necessary.
Get in touch
Relocating in retirement has been a trend for many years. It is only growing in popularity as a consequence of the pandemic as many people take stock of their current living situation.
There can be many benefits to relocating, from a better quality of life and more space to the opportunity to be closer to loved ones. It’s a big decision, though, so taking advice can help you make informed choices.
To find out how we can help, email email@example.com or contact your adviser on 020 3828 8100.