Potential ‘downsizers’ are struggling to move because of a lack of suitable homes and futile financial gains.
A report out today from over-55s financial specialist Key Retirement discovered over half of over-65s physically struggle to maintain their larger homes and are keen to swap to more manageable properties.
Indeed, more than 1.4 million in this age group are considering downsizing in the next five years to a home that is more suitable for retirement.
But more than 620,000 homeowners, Key discovered, have looked into making the move but cannot find a suitable home. And a further 500,000 said they would have considered downsizing but would not be much better off financially.
Dean Mirfin, chief product officer at Key Retirement, said downsizing should make financial sense for older homeowners as it released money to pay for retirement.
He continued: “It also should make sense for the property market as a whole as it frees up bigger houses. But despite the numbers of older homeowners wanting to downsize it is clear they face problems finding suitable homes for retirement and for many the finances just don’t add up.”
He added: “Pensioners are sitting on property wealth of more than £1 trillion which could significantly improve their standard of living in retirement and helping them make the best use of that money would boost their finances and the economy as a whole.”
Supply and demand
Meanwhile Nick Sanderson, CEO of Audley Group commenting on the figures said the supply of downsizing options was simply not keeping up with demand.
“Instead of providing incentives and high-quality housing for older generations,” he said, “the housing market continues to be flooded with initiatives for first-time buyers.
“That’s not to say it should be a case of ‘either, or’ but the other factor at play here is the growing population of over-65s.”
Sanderson expressed concerns that there were 9.9 million over-65s in England and rising, yet only 2% of the UK housing stock was designated as retirement homes.
He said enabling people to move to appropriate housing such as retirement villages, would free up homes for others and create movement in the housing market.
Challenges
Key Retirement’s figures revealed 53% of over-65s found keeping up with DIY jobs around the home was physically tough and 27% said they couldn’t afford the maintenance on their properties.
Meanwhile 42% admitted they had concerns about bills and repairs on their home and 17% said their house was too big for their needs.
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