Downsizing your property
Although the perception of the UK property market is that it isn’t going anywhere there is still an active marketplace especially amongst some groups. One such group are the empty nesters looking to either release some cash or move to a better location.
The over 55’s represent a very powerful group, representing more than 75% of the UK’s wealth. By 2020 they will make up more than half of the population. With famous baby boomers such as Madonna and Iggy Pop retaining youthful exuberance into their 50’s, this generation are far from looking forward to curling up on the sofa with a cup of cocoa. They are far more likely to be looking to release some equity in their suburban 4 bed detached home near to a good school and relocate near to where they can take up kite surfing.
Recent research by property experts Freeman Foreman discovered that 37% of properties sold over the last year have been initiated by downsizers determined to get on with their lives. Further research has found that the fundamental reason why so many downsizers are choosing to put their properties onto the market is to help the younger generation onto the property ladder.
Mortgage free themselves, by selling their properties they can release capital which can help support their children as they invest in their own very first property. Couples looking to downsize their properties have been credited for keeping the property market going, research has revealed.
Either entering into retirement, wanting to be closer to their families or simply wanting to move after their children have left the family nest, hundreds of couples are choosing to look for smaller properties despite poor forecasts for the future. This can fundamentally change their housing needs and there are a number of “lifestyle” developments that offer a great range of opportunities for this niche in the market.
Archstone are one such company that build in the south and south west of England.
The effect of downsizers on property prices can differ depending on motivations and desire, Kevin Hollinrake, Managing Director of leading Estate Agency Hunters Property Group Ltd comments, “‘Downsizers’ or vendors who are selling and not buying account for around 25% of our current instructions – a significant proportion of these clients are reluctant to market their properties at a reasonable market price as they aren’t able to offset any losses against a discount on a purchase. This is definitely an obstacle to listing homes at the right price”
In other cases, price expectation can be tempered by for example the desire to release equity to help a daughter or son get onto the housing ladder or fund care for an elderly relative.
For details of downsizing opportunities across the UK , click here rachel@propertypriceadvice.co.uk
