The ‘ last-time buyers’ stuck with 7.7million spare rooms

MILLIONS of older homeowners are leaving it too late to downsize and find themselves stuck in large and unsuitable housing, a report warns.

A huge shortage of attractive retirement housing and bungalows has left over-55s ‘stuck’ in the family home for longer than they want.

And this has the knock-on effect of clogging up the housing market.

Research found that two-thirds of over-55s with at least two spare bedrooms would prefer to move to a smaller property.

If all of these people did so, it would free up 2.6million family homes and 7.7million un- used bedrooms – instantly alleviating the growing house crisis, experts claimed.

But only 7 per cent of people in this age group have moved in the past five years, partly due to a lack of ‘good value, purpose-built housing’.

In the absence of attractive twobedroom retirement homes, many remain in their larger properties and never make the move.

A survey by financial firm Legal & General found more than half of the over-55s surveyed believed it was best to wait until they were over 70 years old before moving, while a quarter planned to wait until they were over 80.

Nigel Wilson, chief executive of Legal & General, said: ‘There’s an increasing recognition, not least among the last-time buyers themselves, that there isn’t enough supply.

‘To unlock the potential of the last-time buyers market, we need to build more of the right type of housing – two-bedroom properties suitable for older people and near family, friends and facilities.’ Research, conducted by the Centre for Economic and Business Research for L&G, found that more than a quarter of all UK households were occupied by over-55s who had at least two spare bedrooms. It found

‘Incentives for

downsizing’

that the typical ‘last-time buyer’ is retired, looking to move from a four-bedroom house to a twobedroom property and has on average 2.3 spare bedrooms.

Almost half of those considering downsizing said their current property had become unsuitable because it had stairs or a large garden, while a third said it had become too large for their needs.

But many were attached to their homes and wary of leaving after living most of their adult life there.

Mr Wilson called for incentives such as scrapping or reducing stamp duty for those downsizing.

He added: ‘If we get those right, we can help older people in the UK move to properties which better fit their lifestyles and their needs, and, in doing so, free up larger properties suitable for growing families.’

He said that downsizing offered many retirees a chance to free up equity to pay for their retirement, but added that ‘solutions need to offer a positive life choice to differing tastes and needs’.

Paul Green, of over-50s specialist firm Saga, said: ‘A family home is so much more than bricks and mortar – it is imbued with happy memories. So it’s no wonder that people want to live for as long as possible in the home they love.’

But for those who would be tempted to move, ‘there are not enough aspirational retirement developments … and at the same time the cost of moving is offputting for many’.