Almost a third of over-50s who sold their home following a divorce or separation moved into the rental market rather than buying another property, new research reveals.
Some 31% subsequently rented, while downsizing was the most common housing choice, with 44% moving to a smaller property.
A further 14% moved in with family or a partner, according to research from savings platform Flagstone.
The study surveyed 500 UK adults aged over 50 who had divorced or separated during the past five years and received money from the sale of their home as part of the settlement.
STAYING LOCAL
Despite the upheaval of separation and selling the family home, most respondents did not move far.
Some 65% remained in the same area following their separation, while a third relocated elsewhere in the UK.
The findings suggest later-life separation can generate demand across several parts of the housing market, including smaller homes and private rented properties.
Those surveyed personally received an average £154,302 from the sale of their former home, with 56% receiving at least £100,000 and almost a quarter more than £200,000.
DECISIONS DELAYED
Deciding what to do with the proceeds can take considerably longer.
More than half – 53% – took at least a month to decide what to do with the money or remained undecided, with respondents taking around five months on average.
Uncertainty over whether to buy another property or rent was cited by 15%.
Katie Horne (main picture), Savings Expert at Flagstone, says: “Our research shows how the financial and emotional costs of divorce can leave significant sums sitting idle for months while people work through one of life’s biggest transitions.
“Many of those we surveyed received six-figure sums from the sale of a property. Yet close to a third left the cash in a current account – and relatively few chose Fixed Term savings.
“Taking time to make major life decisions is important, but it’s also worth understanding how money is being held and whether it’s reaching its full potential.”
