"Downsizing is the final stage of the homeownership lifecycle but for many, the desire to downsize is lacking and this is completely understandable given that the ascent up the property ladder is an achievement that often takes a lifetime"
- Tim Simmons - Regency Living
A survey of over-50s homeowners, commissioned by Regency Living, shows that 80% of respondents live alone or with one other person.
71% of respondents live in a detached or semi-detached property, and 74% live in homes with three or more bedrooms.
Despite residing in larger properties with more bedrooms than there are residents, 93% 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%).
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.
12% like their neighbours or neighbourhood too much to move, 12% have too many belongings to fit inside a smaller home, and 7% say there aren’t any suitable smaller homes in the area they want to live in.
This reluctance among older homeowners to downsize is causing significant problems for buyers at lower rungs of the property ladder, buyers who are actively looking to upsize, often in order to secure a family home as the size of their household expands.
In fact, a second survey of those actively looking to upsize found that 52% are struggling to find a property, with higher mortgage rates, a lack of suitable stock at the right price, and a lack of suitable stock in their desired area being the leading causes of this struggle.
“Downsizing is the final stage of the homeownership lifecycle but for many, the desire to downsize is lacking and this is completely understandable given that the ascent up the property ladder is an achievement that often takes a lifetime," says Sales & Marketing Director at Regency Living, Tim Simmons.
However, he adds, "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.
"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 housebuilders,"
Tim concludes, "The park home sector is leading the way in this respect and we’ve seen increasing demand for residential park homes in recent years. These sites don’t just provide an ideal property designed specifically for silver downsizers, but they also provide a community and lifestyle that is centred around enjoying later life,”
