Last Time Buyers now own £938bn of UK housing stock and will reach the £1 trillion mark this year, according to new research from Legal & General and CEBR, the economics consultancy.
According to Legal & General’s research, there are now 3.1 million last time buyer households in the UK, with the number of homeowners who have considered downsizing rising from 32% to 39% in the past three years, demonstrating the demand for better later living options for over 55s. Last time buyers make up over a quarter (26%) of all UK households over the age of 55.
Legal & General’s research shows that of the last time buyers who had considered downsizing in the last five years but didn’t, 49% said it was because there were no suitable properties available, with a further 29% stating that the properties that were suitable were too expensive.
Phil Bayliss, head of later living at Legal & General, said: “Last time buyers account for more than a quarter of the total number of households aged over 55. This report highlights the crucial role they could play in unlocking the wider UK housing market, further demonstrating the need for Government to recognise this sector through key policy changes.
“If rightsizers were able to move to a property more aligned to their desired lifestyle and needs, vast swathes of homes would be freed up for growing families and second steppers. This, when matched by the huge health benefits proven to come from age appropriate housing, such as a 50% reduction in GP visits and 40% reduction in NHS spend, means that increasing the number of properties available to these buyers is the most efficient way to help solve the UK’s housing crisis and spiralling NHS costs linked to our ageing population.”
Last time buyers say their optimal age to downsize is between 65-69 – down from 70 in 2015. L&G says this is a much more realistic age for rightsizing and shows a greater awareness of what’s involved and the benefits of making it an earlier proactive step.
The share of last time buyers who have not been able to downsize due to a lack of suitable properties has nearly doubled from 25% in 2015 to 49% today.
45% of last time buyers have lived in their home for 30 years or more, and 29% of last time buyers still live in the first property they ever bought. Just 17% of last time buyer households have lived in their property for under 10 years.
45% of last time buyer households live in a detached house. 72% of LTB households have no one in full time work (with most of these being retired) and the average weekly income for a last time buyer household is £632.
13% of last time buyer households said they would want to free up money for retirement from downsizing. The top use of cash released from downsizing is for supplementing a pension.
Bayliss added: “A large section of our housing stock – worth nearly £1 trillion – is under-occupied and owned by people over the age of 55. It is vital that the over 55s are able to make and act on the choices that are right for them.”