Only 14% of over 55s homeowners plan on downsizing

Only 14% of over 55s homeowners plan on downsizing

Solely 14 per cent of householders aged over 55 who will not be but retired plan on downsizing, new information suggests.

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

It’s because reluctance to downsize impacts the degrees of provide within the property market, and prevents rising households from with the ability to discover suitably sized properties to maneuver into.

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

A brand new survey of two,000 adults over the age of 55 checked out attitudes to downsizing their property

IF NOT YET RETIRED, WHAT BEST DESCRIBES YOUR FUTURE RETIREMENT PLAN?
Staying in my present residence – being the latest residence bought/rented 50%
Downsizing to a smaller residence 14%
Staying in my present residence – being the latest residence bought/rented – and releasing fairness 7%
Rightsizing to a house that’s the identical dimension however in a unique location 6%
Different 3%
Residing with household 2%
Shifting to a retirement neighborhood 1%
Supply: Pegasus   

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

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

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

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 residence after they retire.

This determine jumps to a big 68 per cent of these aged 71 to 75 years outdated.

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

For a complete of 37 per cent of respondents, the effort of shifting is an excessive amount of. After which there may be the potential price of stamp responsibility, which is a consideration for 35 per cent of individuals.

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

BARRIERS IN PLACE THAT ARE PREVENTING YOU FROM DOWNSIZING?
The effort of shifting residence, together with the prolonged course of 37%
The prices of shifting, together with stamp responsibility 35%
There are not any obstacles in place 28%
Lack of appropriate housing to satisfy my wants (dimension, model, location) 26%
I do not know / have not given it as a lot thought but 14%
The shortage of tenure choices (rental) 7%
Lack of help from my household 6%
Supply: Pegasus   

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

He mentioned : ‘The excessive price of stamp responsibility is among the important the explanation why older downsizers will not be promoting up and shifting to smaller properties.

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

‘On the identical time, this might release 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.’

Only 14 per cent of over 55s homeowners plan on moving to a smaller home when they retire

 Solely 14 per cent of over 55s householders plan on shifting to a smaller residence once they retire

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 outdated.

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

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

Different trade specialists agreed that there’s at the moment a scarcity of appropriate housing for older individuals 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 dwelling sector. 

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

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

The cost of stamp duty and the hassle of moving are some of the biggest barriers to downsizing

The price of stamp responsibility and the effort of shifting are among the greatest obstacles to downsizing

The newest analysis is backed by official Authorities statistics which present that of the individuals who moved residence final yr, solely 3.4 per cent had been aged over 65, in contrast with 42 per cent who had been aged below 34. 

Talking in regards to the Pegasus analysis, North London property agent Jeremy Leaf mentioned: ‘I’m not in any respect shocked that the determine is simply 14 per cent, significantly as mid-fifties is comparatively younger to be eager about downsizing.

‘Usually talking, we discover individuals assume extra about downsizing of their sixties and seventies somewhat than earlier, except they produce other well being points.

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

‘Probably the most profitable strikes are invariably those that plan forward, significantly if their current properties will not be significantly appropriate for later dwelling, with plenty of stairs and many others.

‘The shortage of appropriate housing to maneuver into is a matter. In planning phrases, that may very well be improved with larger accessibility to retirement housing. Individuals need to really feel snug the place they’re and have lodging that fits their later wants.’

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