People in the UK are increasingly looking to sell their properties in order to fund their retirement, new research reveals.

Many are also considering renting out their homes to raise retirement funds, the study by asset manager Barings suggests.

The company's research shows that 13% of the population - which equates to almost five million people - say they plan to rent out or sell residential property to fund their retirement.

It marks a 2% increase from last year and is the highest figure since 2009.

One in 20 people - equivalent to around two million - expect to sell their current home to fund their retirement.

The research also reveals that there has been a sharp fall in the number of people who say they have never planned to use property to fund their retirement.

Only around one in three (35%) said this in the latest survey, compared to more than half (59%) in 2009.

"This year's survey indicates that more people are investing in property as a retirement source and the concern is that this could mean they are over-concentrated in the asset class," said Marino Valensise, chief investment officer at Barings.

He described the rise in the number of people relying solely on property to fund their retirement as a "worrying" development.

It would be better to have retirement income coming from a spread of sources – one of which may be property, he suggested.

"Investing for your retirement is about long-term planning and, as people are living longer, more emphasis needs to be put on how a lengthier retirement will be funded," Mr Valensise added.

The latest research comes after a separate study, released this month by Prudential, found that four in 10 retired tenants previously owned their own home.

One in 10 former property owners in the Prudential survey said they had sold their home to boost their retirement income, while others had divorced or needed to clear debts.

Ed Church, head of Strutt & Parker in Kent, said: “Downsizing when you get to retirement age can free up capital so I’m not surprised at these findings. We have found that more retirees are looking at smaller homes such as a modern barn conversion, or a town house with a small garden that can be locked up and left whilst they travel the world blowing the kids' inheritance.”

If you are interested in selling or letting your home, why not contact your local Strutt & Parker office.