The over-65s could help ease the housing shortage by downsizing and ultimately lead to an extra 4.2 million homes on the market, claims a retirement service provider.
“This is something we’ve been talking about for years. Over-65s are sitting on an estimated housing wealth of £1.34 trillion, which many would like to use to help fund their retirement. Downsizing is something many would consider, but a shortage of retirement properties can prove a barrier” claims Peter Girling of Girlings Retirement Rentals.
Girlings highlights that if people were to downsize and rent on assured tenancies rather than buy a retirement property, they would enjoy the security of ownership without having to tie up any capital.
He says the number of over-65s is expected to increase by more than 50 per cent to 17.2m in the next 20 years but separate research from retirement builder McCarthy & Stone say that only around 141,000 specialist retirement homes have been built.
“More needs to be done to ensure a flow both up and down the property ladder, with more attractive and appropriate homes built for sale or rent that older people can downsize to should they wish” says Girling.