Pandemic prompts imminent downsizing plans for one in eight over 70s

RVG’s research shows that 33% of older adults looking to downsize are doing so because their current property is too difficult to maintain, with two thirds (65%) recognising that their property is too large at their current life stage, while more than 1 in 5 (22%) are seeking greater financial freedom by unlocking equity from their home.

As well as downsizing, over 70s are taking further steps towards increasing their financial freedom. Those with debts have reduced their debt by an average of £866 - a total of £1.7bn across the UK – since March 2020, and almost a quarter (23%) are saving more than ever before.

7% of people aged over 70 reported that the last 16 months have helped them raise the subject of moving out of the family home with their loved ones. However, many still find it a difficult conversation and put it off, staying in the family home for longer than is suitable.

Retirement Villages Group is now calling on the government to introduce a stamp duty waiver for downsizers to actively support people in making this choice.

Will Bax, CEO of Retirement Villages Group, commented: “The pandemic has prompted many of us to rethink where we are in life leading to a huge surge in interest for our retirement communities. Our research reinforces this trend, suggesting that more people are planning for the future, getting on top of their finances and exploring their property options. Whilst downsizing remains a difficult conversation for many families, for those that seize the moment it’s a massive step towards to financial freedom that enables people to live life on their terms, to pursue personal goals, and stay active and independent for longer.

“Helping people to make the decision to downsize is also a huge opportunity to rebalance the UK property market. Freeing up the top rung of the property ladder at a time when our ongoing shortage of housing supply continues to create heat in the market, despite the economic impacts of the pandemic. This is a win-win and we call on Government to do more to support older people in making the choice to move into a new breed of later life communities across the country; aspirational, connected, thriving places, that play a vital role in their local neighbourhoods.”