Only 14% of over 55s owners plan on downsizing

Only 14 per cent of house owners aged over 55 who should not but retired plan on downsizing, new information suggests.

It is the most recent proof of the so-called ‘later-living logjam’ that’s plaguing the housing market in Britain.

This is as a result of reluctance to downsize impacts the degrees of provide within the property market, and prevents rising households from having the ability to discover suitably sized properties to maneuver into.

Indeed, consultants mentioned this later-living logjam has a ‘ripple impact’ throughout the board and hinders housing prospects additional down the property ladder.

Steve Bangs, of Pegasus, mentioned: ‘The downsizing dilemma is critical for the trade for 2 causes – not solely does it underline the shortage of provide and have to construct extra properties match for all, but it surely additionally underscores an enormous concern with the general well being of the housing market.

‘If older owners remaining in bigger household properties really feel they can not transfer, upsizing households will even discover themselves at a loss. 

‘This will in flip have a ripple impact proper throughout the board, slowing down transactions and hindering housing prospects for first-time consumers.’

The later-living supplier surveyed greater than 2,000 adults over the age of 55 and located that fifty per cent are planning on staying of their present household house after they retire.

This determine jumps to a major 68 per cent of these aged 71 to 75 years previous.

The survey went on to spotlight among the important boundaries to downsizing. Some owners can be keen to maneuver to a smaller house however the boundaries to doing so show too substantial to beat.

For a complete of 37 per cent of respondents, the trouble of transferring is an excessive amount of. And then there’s the potential price of stamp responsibility, which is a consideration for 35 per cent of individuals.

These had been the most important boundaries to downsizing, adopted by a scarcity of appropriate housing, which was a difficulty for 26 per cent.

Tomer Aboody, of MT Finance, concurred that the excessive prices of transferring, explicit stamp responsibility was proving too large a hurdle for some potentail downsizers.

He mentioned : ‘The excessive price of stamp responsibility is among the important the reason why older downsizers should not promoting up and transferring to smaller properties.

‘We have been calling for stamp responsibility reform for some time as this could encourage downsizers to promote and financial institution as a lot fairness as potential to spice up their financial savings and assist cowl rising prices.

‘At the identical time, this could unlock much-needed household properties for these attempting to maneuver up the ladder.

‘A smaller property wouldn’t solely be extra manageable for downsizers when it comes to upkeep but additionally cheaper to run and warmth.’

The Pegasus survey means that attitudes to downsizing are shifting, nonetheless, with those that are most inclined to downsize being youthful – at 88 per cent for these aged between 55 and 65 years previous.

This is in contrast with solely 8 per cent of these aged between 66 and 75 years previous.

To assist ease the logjam, Pegasus is looking for extra assist for later-living builders by fast-tracked planning.

Other trade consultants agreed that there’s presently a scarcity of appropriate housing for older folks to maneuver into and higher planning legal guidelines might assist enhance entry. 

Mr Bangs added: ‘England’s inflexible planning system fails to offer a framework that permits and encourages the supply of properties within the later residing sector. 

‘This places the UK a long time behind international locations just like the US, with our nation’s notion of later residing and the fact of age-specific housing utterly mismatched.

‘The lack of provide of high quality mid-sized and smaller properties mixed with the lack of expertise of a step that exists earlier than transferring right into a devoted care-led facility retains the sectors potential capped for shoppers.’

The newest analysis is backed by official Government statistics which present that of the individuals who moved house final 12 months, solely 3.4 per cent had been aged over 65, in contrast with 42 per cent who had been aged beneath 34. 

Speaking concerning the Pegasus analysis, North London property agent Jeremy Leaf mentioned: ‘I’m not in any respect shocked that the determine is just 14 per cent, notably as mid-fifties is comparatively younger to be fascinated about downsizing.

‘Generally talking, we discover folks assume extra about downsizing of their sixties and seventies quite than earlier, until they produce other well being points.

‘However, the sooner such choices are made, the higher. We discover, on the bottom, that folks typically go away it too lengthy after which do not have the power or motivation to do it. 

‘The most profitable strikes are invariably those that plan forward, notably if their current properties should not notably appropriate for later residing, with a lot of stairs and so on.

‘The lack of appropriate housing to maneuver into is a matter. In planning phrases, that might be improved with larger accessibility to retirement housing. People wish to really feel comfy the place they’re and have lodging that fits their later wants.’