Retirement and housing adjustment in later life: evidence from the British Household Panel Survey

Abstract

Using data from the first five waves of the British Household Panel Survey (BHPS), we examine the extent and determinants of residential mobility for persons aged 55 or older, plus the subsequent housing adjustments made by those who move. The dimensions of adjustment examined are house value and rental costs, the number of `excess' rooms, and housing tenure. Relatively few individuals move house in later life in Britain. Choices do respond to one's own retirement, but other household changes such as loss of spouse and spouse leaving employment are also important. When a residential move is made, there is a tendency for housing consumption to change in a direction consistent with the correction of a disequilibrium position.