The housing ladder has several stages – first home, family home… then what? Maybe nothing, new research suggests1, more older homeowners are staying put, with no plans to downsize.
Indeed, seven in 10 respondents said that they are not looking to downsize, in a survey of 1,000 homeowners. Moreover, although 29% do plan to downsize within the next five years, only 13% of over-75s have done so. So, what’s stopping them?
Forever home
The main reasons cited for not wanting to downsize include not being suited to a smaller house (31%), already living in their ‘forever home’ (25%) and having no desire to move away from their community (23%).
The whole process of moving home was also called into question as being ‘exhausting’ (22%) and that a move would not bring any financial benefit once costs were considered (16%).
Positive downsizers
On the other hand, of those who do plan to downsize, 43% cited finding it easier to look after a smaller property, while 38% said that it would be cheaper and 27% noted a desire to have more money in retirement.
1Key, 2023
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.