58% of over 55s have no intention to downsize in the near future, despite industry calls for more family-sized properties to come onto market, according to research from conveyancing service provider My Home Move.
Doug Crawford, CEO of My Home Move, said: “The housing market has been suffering from a lack of stock for over 12 months, causing demand to outstrip supply time and time again. This has resulted in sky-high house prices, instances of gazumping increasing and the Bank of Mum and Dad being called upon regularly to help first-time buyers with their deposit.
“Unfortunately, the findings from our survey suggest the situation is unlikely to ease, especially as 58% of those questioned have no intention of downsizing to release more top-end properties onto the market anytime soon.”
The survey of 1,000 UK residents, aged 55 and over, also discovered that for those who would like to downsize (25%), there existed real and urgent barriers which were stopping them from putting their homes on the market.
39% of would-be downsizers cited there are not enough of the ‘right kind’ of properties available to move into; while nearly 40% saw the costs involved in moving, including Stamp Duty Land Tax, as too prohibitive to consider moving now.
Crawford added: “Despite the changes to Stamp Duty in 2014, the costs involved in moving can still tally into the thousands. This is especially true since the introduction of the 3% surcharge for additional properties. For those on a fixed income or heading towards retirement, it is not surprising that the financial reality is a stumbling block.
“We have seen stamp duty holidays for first-time buyers in the past, so there is no reason the government couldn’t extend a similar scheme to downsizers, to help free up the market and get transactions moving.
“In a final point, would-be downsizers highlighted the lack of ‘right-sized’ properties available to buy as a barrier, with over half looking for a bungalow as their preferred new home, as opposed to purpose built retirement properties. However, with only 2% of new builds being registered as bungalows in 2015, it would seem their frustrations are justified.”