As the housing crisis continues to make headlines, innovative new solutions are appearing about how to tackle the problem through an incentives-based approach.
Under new proposals, pensioners will be incentivised to downsize their largely empty family homes to smaller options, such as flats and bungalows, to free up space for new families entering the housing market for the first time.
These plans will be set out by Sajid Javid, the Communities Secretary, with the intention of addressing the serious shortage of housing in the UK. Although the plans haven’t yet been finalised, if agreement is reached the Government could give pensioners help with moving costs or an exemption on stamp duty to encourage them to move. It’s expected that a move like this would release hundreds of thousands of homes onto the market, drastically improving the prospects for young families to own a larger property.
It would also make it easier for younger people to achieve independence from continuing to live in their parents’ homes, which has become more commonplace due to the continuing shortage of homes.
The concept was first raised by Lord Newby, who said that more than half of people over the age of 55 has spare rooms and suggested that the government could help them move their house. “If we can facilitate downsizing where people genuinely want to do it, society as a whole will benefit” he said.
The over-50s group Saga estimates that there are 3.4 million householders over the age of 65 who want to move to a smaller home, with 2.3 million of them having at least two spare rooms in their current living situation. The benefits of freeing those properties up for young families is easily apparent, which is why this proposal has been generating so much interest.
However, finding the right property to downsize into can be an issue. Most towns and cities have a ready supply of apartments, but this can be a step too far for some used to their own space and a garden.
Watsons are experiencing a strong demand for small bungalows from buyers in this very position. Often though, it can be challenging to find a property which is in a satisfactory condition, especially if the property has been occupied for many years and requires improvement. Also, some bungalows may have large gardens, which can make them a less attractive option for older residents who might prefer a more convenient size. It’s interesting to note that some developers are now recognising this trend and are building new bungalows to meet the demand – something not seen for many years in the housing market.
To find out more, give us a call on 01603 619916 to discuss what options are available to you.
