A quarter of the UK population will over the age of 65 by 2045 according to the Office for National Statistics. Many of those pensioners will still be living in homes they’re currently buying as young, working people.
But the shortage of suitable properties and care home places for older people in the present day suggests our future pensioners will be stuck, as many of today’s pensioners are, in large houses that are totally unsuited for their physical and social needs.
The effect of that is that the so-called baby boomers who got on to the property ladder when properties were plentiful and relatively cheap can’t sell up. That reduces the number of family-sized properties on the market and increasing the demand from families who need bigger accommodation.
Pensioners hold trillions in housing wealth
Pensioners are left sitting on a massive financial asset but have nowhere to go when they want to downsize because there are too few appropriate properties on the market. According to research by estate agents Knight Frank, Britain’s over 60s hold around £1.23 trillion of the UK’s unmortgaged housing wealth.
That same research into the retirement market indicated that more than a quarter of respondents who participated in the Knight Frank survey said they would consider moving to some kind of retirement housing in the future.
It’s clear there’s a gap in the market for smart developers who can provide accommodation that’s tailored for older people. That means the luxury retirement sector could be the next area of the property market to see growth – if builders can find suitable sites to develop.
New life in the country
Large country homes, such as Windlestone Hall, birthplace of former prime minister Sir Anthony Eden, may become the preferred option of some developers.
The stately home in Co. Durham, which is currently in a state of disrepair after years of neglect and a chequered past with developers, is now the subject of a plan by developers to create 45 en-suite apartments. Its extensive grounds are expected to include another 40 luxury flats, all aimed at retirees who want independent living coupled with a ready-made community.
Whether you’re a baby boomer ready to downsize or a first-time buyer making your initial step into home ownership, Homeward Legal can provide the conveyancing service you need. Call 0800 038 6699 to find out how.