Property prices could suffer from a flood of homes coming on to the market as more than half of everyone aged between 45 and 65 years old plan to fund their retirement from property income.

About 25% expect part of their retirement income to come from downsizing their property, despite recent figures showing that the weekly amount raised by doing so has fallen by a fifth in the past year.

Equity release is a hope for 10% while another 10% plan to take income from letting a buy to let or second home.

Some (5%) propose to sell a second home to pay for their retirement

“The property market could witness a glut of properties coming onto the market in the next 10 to 15 years, corresponding with a massive hunt for cheaper rural houses,” said David Thompson, managing director of wealth investments and distribution at pension and investment firm AXA, who conducted the survey.

“This will have a significant impact on the UK housing market.”

The research also uncovered a trend of lifestyle changes in retirement, with around one in three people saying they planned on moving home, the majority of which said they would seek a house in the countryside, by the sea or abroad.

For all the talk of the recession affecting consumers’ plans, almost three quarters (73%) said they had no plans to delay their retirement because of the downturn.

Second home owners will need planning permission to switch a property from a family home if MPs back a 10-minute bill before Parliament.

North Cornwall MP Dan Rogerson claims second home owners are pushing up house prices and making homes to expensive for people living in holiday areas.

The Lib-Dem wants backing for a change to planning law that will give planners the chance to turn down requests to convert a property from a permanent home in to a second home.

Mr Rogerson said: “Vast numbers of good family homes are left empty throughout the weekdays and the winters, while thousands of people in Cornwall are without adequate housing, or can’t afford to stay in the area.

“Yet the Conservative and Labour response is to do nothing.

“My Bill would put power back in the hands of communities and their councils.”

His proposal suggests a new Use Class should be created for second homes in a similar way to the new class for houses in multiple occupation (HMOs) comes in on April 6.

The likelihood of the bill winning support is slim as Parliament winds down for the expected General Election in a few weeks time.

The Government is already straining time limits to pass the Finance Bill after the Budget and other legislation.

He has put similar proposals in front of Mps in the past without success.

Mr Rogerson told MPs that action is needed as the average home in his consituency costs £243,527 – more than 15 times higher than the average salary of £15,408.