As we get older many of us think about downsizing our homes. Half of those aged 65 and over would be tempted to downsize, an increase of 300,000 people in the past 12 months, according to the latest data.
Some say the UK could be on the brink of a huge property shift as 5.7 million people consider moving to smaller homes. About 38 percent of the age group would consider downsizing now, with an additional 10 percent encouraged to move with a stamp duty exemption, says housebuilder McCarthy & Stone as part of its annual Retirement Confidence Index.
With owners aged 65 and older expected to release an average of £80,000 each, and currently owning property worth around £1.5 trillion, this could equate to £450bn of equity to be spent on retirement funding or other expenditure at a time when the nation’s social care funding is under increasing pressure.
“The rise in the number of those who want to downsize is an inevitable consequence of the UK’s rapidly ageing population,” says Clive Fenton, chief executive at McCarthy & Stone.
“Many retirees would like to sell in order to fund their retirement by moving down the ladder or help children or grandchildren move up the ladder. “If more over-65s downsized then the housing shortage could be eased bearing in mind the amount of existing accommodation, which is substantially under-occupied,” Mr Leaf adds.
“One radical solution, rather than rearranging the deck chairs on the Titanic, could be for downsizing or all vendors, rather than purchasers, paying stamp duty as an incentive to help unblock the market.” “Alternatively, older people could share larger houses with their grandchildren, possibly converting their family homes to flats rather than being isolated and dependent on outside care,” says Mr Leaf. Whatever you are planning to do with your downsizing Enables IFAs in Bishops Stortford can help.
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