The over-55s are set to go on a property buying spree, new research suggests.

More than a third of homeowners over the age of 55 are planning to buy at least one more property in their lives, according to new research by Prudential.

It calculates that existing householders over age 55 will account for more than three million property transactions worth a total of more than £775 billion.

Nearly one in five looking to buy either buy-to-let property, second homes, development properties or homes for their relatives.

The average maximum purchase price for their next property is over £250,000, while one in five say they are willing to spend £350,000 or more. 

The majority said that their plan purchase is likely to be the last, although one in 10 said they will probably buy again in the future.

Yet only one in seven say this is a response to recent pension freedoms that allow the over-55s to cash in their pots.

Stan Russell, retirement expert at Prudential, 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.

“In fact the process of withdrawing cash from a pension fund to purchase property and potentially generate an income is complex and could result in a large tax bill.”

Many over-55s were planning a property deal in order to downsize.

Russell added:  “Using money raised from a property sale could be a helpful boost to retirement income for some.”