Unlocking the housing market, downsizing is the solution no one wants to touch
The Spring Statement was a relatively quiet affair compared to previous years and while expected, it has shifted people’s focus toward the Autumn Budget much earlier than usual.
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At the heart of the debate is the housing crisis and it remains one of the most significant hurdles for policymakers. Research out this month revealed that the average age of a first-time buyer has now risen to 34.
While the need to support younger buyers is indisputable, the piecemeal approach has often exacerbated the very challenges it sought to solve.
Rather than attempting to fix parts of the market in isolation, the government must adopt a holistic view. This means recognising that the entire market depends on movement at every level - including the top.
By 2066, the number of people aged 65 and over will have grown by 8.3 million - equivalent to the population of London. A significant proportion of these people continue to live in large family homes that aren’t aligned with their needs. However, between the cost and upheaval of moving and a lack of downsizing options, the incentive to move later in life is lacking.
It’s vital the government looks to serve the needs of the whole population with its housing stock, providing a range of options for people thinking about moving in their 60s, 70s and 80s. Integrated Retirement Communities (IRCs) aren’t the sole solution, but they should be an integral part of the housing minister’s plans.
Increasing the availability and range of options for downsizers, from bungalows to city-centre flats through to IRCs, will give people more choice when thinking about where and how they want to live as they get older, and make downsizing more desirable.
The solution isn’t simply about building more homes - it’s about making the most of the existing housing stock. Encouraging older homeowners to downsize could unlock thousands of larger family homes, helping to relieve pressure across the housing market.
Despite the clear upsides, the later living market is growing slowly compared to the opportunity. Various challenges persist, from land availability to planning rules, and the 1.5 million new homes pledge has done little to accelerate growth.
The government, developers, and the wider housing sector must work together to address this gap. Later living is not a luxury. It is a vital part of a functioning housing market. By prioritising it now, the UK can make significant progress toward a more flexible and equal housing system - one that benefits both older homeowners and the families waiting for homes that better suit their needs.
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Nick Sanderson is the CEO of Audley Group
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