So, how could downsizing during retirement benefit me? Working within the affordable housing sector, we understand first-hand how difficult the balance between supply and demand is to address. Having the correct properties in the correct locations for those in need can’t solely be solved by new builds, as recent news alludes to governmental plans to ‘free-up’ some already established properties.
We’ve analysed the potential incentivisation of elderly households downsizing, and we’re here to help you understand why this may be a good idea for your retirement!
Why Is There A Call For More Households To Downsize?
Chris Pincher, the previous Housing Minister, declared almost 4 in ten properties are officially under-occupied. The issue highlighted here is households which live in a property with more bedrooms than required meaning less availability for those who need this additional space.
With a lack of larger properties available for growing families, potential plans to incentivise those who no longer require a sizable home are being discussed. The plans include enticing elderly households to downsize by receiving stamp duty cuts and therefore freeing up larger homes for families.
What Does The Future of Retirement Housing Look Like?
Elderly households should not feel forced to downsize, and rather make an informed decision based on their circumstances. As family life changes with age, the need for additional room naturally reduces. Our data agree with this hypothesis, as our forecast suggests bungalows being the most in-demand and detached houses having none as early as the end of this year!
In terms of bedrooms, we find that demand reduces as the number of bedrooms increases – with 51% of retirement rentals looking for only one bedroom. Retirement apartments are also becoming increasingly popular, taking second place after a bungalow in our top property type search.
What Benefits Could I Expect If I Downsized?
Downsizing in retirement can offer an abundance of benefits – here are our top 5!
1. Freeing Up Finances
Selling your house will result in a pleasant payment and profit when trading in for a smaller property. Not only this, but you may also enjoy a reduced spend on your utility bills – meaning more free capital to enjoy that newfound free time!
2. The Availability of Advice and Help
There are so many resources available, as more housing associations are on hand to offer support for those on the search for more appropriate housing. This is especially useful if you’re looking for more support whilst maintaining your independence, with specialist accommodation available.
3. More Accessibility
Although you may think you’re limiting any additional space by downsizing, you may be moving to a more accessible property for your needs. Retirement properties are often in prime locations, meaning more local amenities and a reduced need for travel.
4. A Welcoming Community
Moving into a smaller property such as an apartment can mean more like-minded neighbourhoods and a sense of community. Retirement communities often offer communal spaces and activities, so you have the opportunity to socialise as and when you like!
5. Less Space Means Less Upkeep
Moving into a smaller home not only presents the opportunity to declutter, but less space means less tidying! Say goodbye to hours of cleaning and mowing that lawn, and enjoy reduced upkeep – some properties may even have assistance for this!
Is Downsizing For Me?
Deciding whether it’s time to downsize is highly subjective, so it’s important you way up the pros and cons in accordance to your personal circumstances. If you’d like to know more about retirement housing from actual tenants, My Future Living’s blog have some fantastic stories.
With an abundance of affordable retirement properties on our website right now – why not take a look?