New research from a leading retirement property firm has revealed older property owners are becoming increasingly less likely to downsize.
Experts from Regency Living commissioned a survey into property owners over 50 and found 74% live in homes with more than three bedrooms despite their household being comprised of less than three.
Understandably, researchers outlined this is having detrimental affects on growing families looking to upsize their properties. While financial strains and the current state of interest rates will inevitably be playing a part, the survey found a lack of suitable stock is also causing limitations.
In a statement titled ‘Older owners clogging up the housing market,’ a marketing spokesperson from Regency Living said: ‘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.’
According to the research, this picture doesn’t look as though it will be changing anytime soon. of the 71% of respondents who live in a detached or semi-detached property, and 74% who live in homes with three or more bedrooms, more than nine out of 10 (93%) say they have no intention of downsizing to a smaller property.
When asked why, 24% of respondents said they’re financially comfortable enough that they don’t feel the need to release equity and 21% claimed it is important to have enough space in your home to be able to host friends and family. 16% also remarked that they’re waiting to downsize for health reasons.
Meanwhile, some 12% like their neighbourhood too much to move, while another 12% have too many belongings to fit inside a smaller home. Only 7% of respondents cited a lack of smaller homes in the area they want to live is as the reasons they want to stay in their bigger property.
‘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,’ the spokesperson added. ‘So, will this segment of the market may be stubborn than the rest, perhaps the issue isn’t their unwillingness to downsize, but the fact they have been largely ignored by housebuilders.’
The full research from Regency Living can be accessed here.
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