Almost six in 10 older homeowners have considered downsizing, but stamp duty, community ties and a shortage of suitable properties are preventing many from moving.
A survey of 2,591 Family Building Society members finds more than half regard stamp duty as an obstacle to downsizing, while a similar proportion worry about leaving friends, relatives and established community connections.
The research supports the Radix Housing Commission report Resizing, Rightsizing, which proposes measures to help older homeowners move into properties better suited to their later-life needs.
Removing barriers to downsizing could release larger, underoccupied homes for growing families while supporting movement throughout the housing chain.
AMENITIES SHAPE MOVING DECISIONS
Almost three in five respondents say proximity to shops, GP surgeries and public transport would be an important consideration when choosing a new home.
Access to amenities becomes particularly significant for older homeowners who no longer drive or expect their ability to do so to reduce.
One respondent comments: “We’ve considered a location close—within walking distance—to local amenities essential.”
Another says remaining close to friends and regular social activities is an important reason for staying in their existing home.
SHORTAGE OF BUNGALOWS
A lack of appropriate housing is identified as another major constraint, with 54% of respondents saying the limited supply of suitable homes – particularly bungalows – is preventing downsizing.
One member tells the society: “There are not enough bungalows being built now.”
The findings indicate that reducing the financial cost of moving would address only part of the problem. New developments would also need to provide accessible homes near transport, healthcare, shops and existing communities.
“Stamp duty remains a key deterrent.”
Alistair Nimmo (main picture, inset), Director of Marketing at Family Building Society, says: “Our survey shows that there are a variety of reasons why the elderly are not downsizing. Whilst stamp duty remains a key deterrent, the loss of friends, being further away from family and potential lack of local amenities are just as important.
“On top of those reasons there is a distinct lack of suitable properties available, particularly bungalows.
“The Government has a lot of work to do if it is to encourage older homeowners to downsize. Releasing underutilised family homes on to the market would encourage others to move up the housing ladder, providing more opportunities for first-time buyers and growing families.”
