Third of home owners unable to downsize

January 24, 2016 by Brendan O'Neill

Home owners

According to a new report, around 33% of home owners in the UK aged 55 or over, are prevented from downsizing their home due to a lack of suitable properties.

The survey, which was produced by YouGov, suggests that a generation of people who wish to downsize are unable to move due to a lack of choice of properties on the market.

The report, entitled “Generation Stuck: Exploring the Reality of Downsizing in Later Life” was commissioned by McCarthy & Stone, a retirement house builder, and collated by the International Longevity Centre UK. According to the report, an ageing population is stuck in properties which are under occupied and unsuitable for their requirements, mainly due to a shortage of retirement properties in the UK.

Just over half the people who are in an under occupied property are aged 55 and over. Previous research has indicated that it would take around 20 years for the housing market, performing at its current rate, to meet the demands of people wanting to downsize.

Data released by McCarthy & Stone shows that an average of £60,000 was released when home owners downsized, with almost one fifth releasing over £100,000. A third wanted to use the money to improve their day to day life, while a fifth gave it to a family member.

Undergoing CeMAP training provides a mortgage adviser with crucial information about investing in a property. It is advisable to seek professional advice before making the decision to downsize to another property.