Despite the rise of equity release as a viable option in becoming financially secure in older age, downsizing is still a lot more popular amongst people aged over 50.
Over a third of over 50s are considering downsizing in the future according to a report by Equity Release Supermarket.
This may be welcome news to many families struggling to find an appropriate home in a market depleted of adequate family sized housing stock.
Currently, the average homeowner aged over 50 live in accommodation with at least two empty rooms. This equates to £56,574 of total unused space or £1,669 per square metre.
Only 12% of respondents are looking to release equity in their home in the future, preferring instead to find smaller, more suitable accommodation.
Mark Gregory, founder and CEO of Equity Release Supermarket, commented: “Our survey found there is plenty of space in the family homes of empty nesters which is going to waste, and it’s not just space – but possible financial wastage.
“There tends to be fond memories and a certain amount of nostalgia linked to a property, so it’s difficult for people to say goodbye to a family home. One option for empty nesters to raise equity is to simply sell the family home and down-size.
“The research highlighted that many over-50s are effectively sitting on thousands of pounds of wasted space.
“However, with a reluctance to say goodbye to all those memories, many incorrectly believe that downsizing is the only way to release their financial security tied up in a property, when the reality is that equity release can be an alternative solution.”
Are more final steppers looking to downsize in the current market? Will a stamp duty relief encourage more movement in this area of the market?
One Response
Seems to be some divergence in figures but this is good news
If equity releasers pass value through the bank of Mum and Dad but keep their home off the market we will have too much money chasing too few properties and inflationary disaster