A lack of suitable property is preventing millions of older homeowners from downsizing, creating problems in the housing market, according to a new report.
The research, by Key Retirement, found there was certainly a desire among older homeowners to downsize: more that 1.4m of over-65 year olds surveyed said wanted to downsize within the next five years.
However financial constraints are causing problems. Key Retirement said that 620,000 retirement homeowners surveyed said they had looked into downsizing but could not find a suitable home in their local area.
A further 500,000 said they have considered moving, but would not be better off financially as a result.
In total around one in three homeowners aged 65 or over said they would consider downsizing. This proportion was as high as 58 per cent in the North East, and 44 per cent in the South East. But financial constraints were preventing them from doing so.
Key Retirement’s said many of these older homeowners are struggling to maintain larger properties. More than half of over 65s said keeping up with DIY jobs was physically tough.
Two out of five (42 per cent) of over-65s surveyed said they were worried about bills and the need for repairs on their home, while 27 per cent said they struggle to afford maintenance on their homes.
Key Retirement’s chief product officer Dean Mirfin says: “Downsizing should make financial sense for older homeowners as it releases money to pay for retirement. It should also make sense for the property market as a whole as it fees up bigger houses.
“But despite the numbers of older homeowners wanting to downsize it is clear they face problems in finding suitable homes for retirement and for many the finances just don’t add up. Unfortunately, that leaves them struggling to maintain homes, and in many cases, struggling financially.”
The survey found that around 11 per cent of over 65 homeowners say they have already downsized, with pension in the North West and South East (both 13 per cent) most likely to have made the move to a more property.
Audley Group chief executive Nick Sanderson says: “The supply of downsizing options is simply not keeping up with demand. Instead of providing incentives and high quality housing for older generations, the housing market continues to be flooded with initiatives for first time buyers.”
.
