A retirement property firm has accused older property owners in the mainstream market of “clogging up” transactions by refusing to downsize.
In a statement titled ‘Older owners clogging up the housing market’, a marketing spokesperson at the Regency Living company says: “The decision to remain in larger family homes once the nest has emptied is causing a significant bottleneck across the property market, as it limits the supply of stock available to those looking to upsize.”
Research by the company suggests that 74% of over-50s live in homes with more than three bedrooms despite the vast majority living in households of fewer than three people. And the company claims that at the same time, around half of those actively looking to upsize to a larger home are struggling to do so, with a lack of suitable stock being one of the key reasons.
The firm’s survey of over-50s homeowners shows that 80% of respondents live alone or with one other person.
Of the 71% of respondents who live in a detached or semi-detached property, and 74% live in homes with three or more bedrooms, more than nine out of 10 say they have no intention of downsizing to a smaller property.
When asked why they don’t plan to downsize, the common answer among respondents is that they are financially comfortable and don’t need to release equity (24%). Another 21% say it’s important to have enough space for friends and family to visit, while 16% are waiting until they are older and have to downsize for health reasons.
Some 12% like their neighbours or neighbourhood too much to move, while another 12% have too many belongings to fit inside a smaller home. Only 7% say there aren’t any suitable smaller homes in the area they want to live in.
The Regency Living spokesperson continues: “Unfortunately, when it comes to the issue of housing supply, much of the focus remains on the provision of starter homes for first-time buyers and we simply haven’t seen enough homes built with the aim of encouraging mature homeowners to downsize.
“So, whilst this segment of the market may be more stubborn than the rest, perhaps the issue isn’t their unwillingness to downsize, but the fact they have been largely ignored by house builders.”