Recently there has been a lot of content and reports based on people in the need for the ‘race for space’. This is basically lots of potential homeowners and renters in a rush to move to a property that is bigger than the one they currently have.
It is thought that the main reason for this is the pandemic. This is because of the multiple lockdowns we have had and the importance of the ‘stay at home’ message. People have spent more time at home than ever before and have realised if something like this was to happen again, they would want more space.
However, although having space is important, sometimes there can just be too much space for some people. This may be because they are living in a large family home and now there are less people living there. This than then create a need for people to want to ‘downsize’ to a better suited property.
What is downsizing?
Downsizing, quite simply is the process of moving into a smaller property. There are many different reasons as to why people downsize, which we will discuss further in this piece. The main reasons are to increase your finances, reduce your spending, to move to a better location or have a home better suited to your needs.
Why do people downsize?
Downsizing is usually something that people do later in life. This is usually as people get older and maybe their children have moved out and it is just 2 in the home. Realistically a 4 bedroom house is too much to maintain for people as they get older and have less people in the home. It can sometimes be more effort to keep tidy than it is worth.
People may downsize because they no longer need to pay money for rooms they are not using. This could either be in terms of heating costs and keeping tidy or actually in council properties, not having to pay for rooms you are not using. This is known as the ‘bedroom tax’ where your Housing Benefit could be reduced if you live in council or social housing and have a spare bedroom. The reduction is:
- 14% of the ‘eligible rent’ for 1 spare bedroom
- 25% of the ‘eligible rent’ for 2 or more spare bedrooms.
So although having the need for more space is important to some people, especially those in small spaces during the pandemic. There are also people who have realised that they need less space as it is not suited for their needs. This may be the case for older people who are now wanting to sell their homes to move into retirement properties or over 55 schemes.
Retirement properties and downsizing
Many older people may want to downsize in order to become part of a community. Maybe they have been living in a home that no longer meets their needs, with their main priority being companionship. A solution to this is over 55 housing, sheltered living/retirement living. This is a perfect way that downsizing works as it allows older people to still have their independence, but also ensures they have companionship as well as medical care if needed.
MovingSoon data shows increase in searches for seaside locations for Over 55s
We have seen an increase from the first 3 months of 2021 to the second 3 months in interest in Over 55 properties in near to the sea. For example we have seen the following increases in these seaside places:
Clacton-on-Sea – 69%
Brighton – 47.5%
Weymouth – 38%
This could be due to the fact those over the age of 55 want to be closer to the seaside and outside space in general since we’ve been in the pandemic.
You can search for retirement properties to rent across the UK to find something that suits your needs.
You can also search for retirement shared ownership, also known as Older Person’s Shared Ownership. This is where you can buy you can buy a minimum of 25% share of a property up to a maximum of 75%. If you buy a 75% share you do not pay any rent on the remaining 25% share. This is an important difference to other shared ownership schemes. If you are looking to free up cash and release some equity when downsizing then older people’s shared ownership could be an option for you.
