The focus needs to shift to last-time buyers to make downsizing work better

10 May 2019

Nick Freeth, Managing Director of Retirement Homesearch, looks at Savills analysis that housing equity remains in older hands, and how we can change this picture.

Retirement properties account for just 2% of UK private housing stock, and few homes in the UK are designed with ageing in mind. It’s time Government prioritised downsizing.

Recent analysis by leading property agents, Savills found that the value of UK housing stock has hit a record high (increased by 2.7% to £7.29 trillion in 2018), but remains in older hands with more than £77 in every £100 of housing equity being held by the over 50s.

There’s much to be said by the Government and housing-market commentators on the significance and importance of first-time buyers, but perhaps Savills’ latest research should act as a reminder that the focus needs to shift to last-time buyers in an attempt remove the blockage at the top of the market. This would involve a combination of emotional support, in order to encourage older people to view downsizing as a realistic and beneficial option; but also practical support, ensuring there’s enough retirement stock to meet the needs of an aging population.

From an emotional perspective, we need to present downsizing as the positive and exciting opportunity it is – the beginning to an exciting new phase of life. In our experience, downsizing is driven by retirees who want security, safety, convenience and companionship in their later years, but they are often disillusioned by the thought of leaving their family home and making a significant lifestyle change later in life. Not enough is made of the positives, such as the fact that moving to a smaller, easier to maintain property will not only free up retirees’ time, but also have a fruitful financial impact.