Every time I write about downsizing someone quite rightly points out that it is easier in theory than in practice. Leaving the large lovely houses you have brought your children up in isn't ever easy. But it's made even harder in the UK by the lack of houses being built for older people to move into.
This is a point picked up in the Telegraph this week by Clive Fenton of McCarthy & Stone (the UK's largest housebuilder for older people). He reckons that six out of ten people over 60 would like to be "last-time buyers" they want to downsize and buy somewhere smaller specifically for their retirement. Demos puts the number at about 3.5 million people.
Many of those say they are looking for a specifically designed retirement property. This makes sense for them and for all of us for all sorts of reasons.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Building new properties for downsizers frees up family housing. It uses up brownfield land retirees tend to want to live in central areas with easy access to services. It helps to sustain high streets, for the same reason. And it "reduces demand on public sector resources" residents of owner-occupied retirement housing "manage better and spend fewer nights in hospital." That matters, given that "for every year that one person delays or avoids moving into publicly funded residential care, the state saves £30,000."
The question then is what can be done to create more of this kind of housing as our population ages and the row about our housing crisis heats up (see my editor's letter in MoneyWeek this week for more on this).
Fenton reckons that retirement housing should be given special planning status, and that stamp duty should be cut for downsizers. We are extremely loath to suggest that any more subsidies, exemptions or regulations are added to the huge pile currently distorting the UK property market.
This is one of those few areas on which I am not entirely sure what I think (and therefore what it is best to campaign for). But I suspect MoneyWeek readers might be able to help out. Note that in the UK a mere 1% of people live in retirement housing. In the US that number is 17% and in Austria it is 13%.
Thoughts, please?
-
Ofgem proposes new energy tariffs with low or no standing changesStanding charges have invited public backlash as households battle high energy bills
-
Google shares bounce on Gemini 2.0 launchGoogle has launched the latest version of its Gemini AI platform, and markets have responded positively. Is it time to buy Google shares?
-
House prices to crash? Your house may still be making you money, but not for much longerOpinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
-
Prepare your portfolio for recessionOpinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
-
Investing for income? Here are six investment trusts to buy nowOpinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
-
Stories are great – but investors should stick to realityOpinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
-
Everything is collapsing at once – here’s what to do about itOpinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
-
Value is starting to emerge in the marketsOpinion If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy traditionally expensive growth stocks on the cheap, too.
-
ESG investing could end up being a classic mistakeOpinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
-
UK house prices will fall – but not for a few yearsOpinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
