Older homeowners have a collective 10 million spare bedrooms between them, new research has suggested.
The research by Zoopla says many people over 65 are living in larger homes than they need, which the property portal claims is preventing young people from getting onto the property ladder.
More than four in ten homeowners aged 65 or over say they live in a home which is ‘larger than they need.’
Zoopla says this equates to 2.6 million homes in the UK that are being under-utilised and may be better suited to young families and first-time buyers.
Too much space? Four in ten homeowners aged 65 or over say that they live in a home which is ‘larger than they need, according to Zoopla
The research also found that nine in ten homeowners over 65 either lived alone or just with their partner, yet more than seven in ten lived in homes with three bedrooms or more.
Nine in ten of those surveyed have at least one spare bedroom and half have two or more.
A fifth of the over 65s surveyed say that in a typical year, they use none of their spare rooms at all with a quarter claiming they have other rooms in their home – such as dining rooms or reception rooms – that go unused most of the year.
Three-bed homes at centre of supply crunch
There is currently a larger disparity between supply and demand for three-bedroom homes than any other type of property in the UK, according to Zoopla.
Zoopla says that this impacts those going from their first home to a larger property, but it also impacts first-time buyers who make up a third of the market.
The average first time buyer is now 34, compared to 30 a decade ago, meaning many now need a family-sized home from the get-go.
Empty rooms: Nine in ten of those surveyed say they have at least one spare bedroom and half have two or more
Daniel Copley, consumer expert at Zoopla said: ‘We know that three bedroom homes are very popular for families and first-time buyers, but there are simply not enough on the market.
‘We are not here to tell homeowners what to do – many are putting their larger homes to good use or understandably don’t want to let go of the family space.
‘But we can help arm homeowners with the tools they may need to make their next move – and for those that are considering downsizing, it could increase supply of suitable properties for younger buyers so they can find their perfect home.
‘The research also demonstrated that on average, homeowners over 65 have lived in their home for over a quarter of a century.
‘Given the huge house prices rises over this period and the current high demand, many may be in for a very pleasant surprise in terms of their house’s value.
‘We’d encourage homeowners to speak to an agent who can help to advise on this process and work with you to find your next home.’
Nostalgia and stress of moving put downsizers off
Many over-65s will have lived in their home for much of their adult lives, and to move elsewhere would require a major upheaval, both in terms of physical and emotional baggage.
According to Zoopla, the average homeowner over 65 has lived in their property for 26 years.
It found a quarter of older people feel moving home would be ‘too stressful’ while emotional ties are also a barrier preventing more than one in five from moving.
Housing shortage: Zoopla says there are 2.6 million homes in the UK that could be put to use by larger families
Jonathan Hopper, chief executive of Garrington Property Finders says: ‘Live somewhere long enough and it’s normal to put down roots. For many older people, those roots run deep – and their home is a key part of them.
‘That’s why many couples often keep on living in the family home long after their children have flown the nest and they no longer need so much space.
‘This inertia is partly due to nostalgia – homes often invariably hold happy memories – but also practical concerns. After many years in one place, the prospect of moving somewhere smaller can feel daunting.’
There are also many who will intend to hold on to their home in order to pass it down to family members.
Zoopla found that a quarter of people plan to remain in their home so their family can inherit it – meaning their own children or grandchildren are less likely to have trouble finding a family-sized home in the future.
Family celebrations are also a factor, with over a quarter saying they’d be ‘concerned’ about being able to host Christmas if they downsized.
Hopper adds: ‘There’s often the desire to have enough space for the children to come home at Christmas, even if their former bedrooms are dusty white elephants for the rest of the year.
‘That’s why it can be better to view this move as “right-sizing” rather than downsizing – it’s about moving to somewhere that suits your needs now, not what they were 10 or 20 years ago.’
No place like home: According to Zoopla the average homeowner over 65 has lived in their property for 26 years
On top of the practical and emotional reasons for remaining in the family home, there is also little financial incentive at present for downsizing.
Taxes such as stamp duty mean downsizing will often come with an added upfront cost.
There are also associated costs with selling and buying property, such as estate agent fees, legal fees, surveyor costs and removal firms.
Downsizers need more than encouragement to help them downsize, according to Paula Higgins, the founder of Homeowners Alliance.
‘One of the biggest reasons why older people don’t move is the lack of suitable housing,’ says Higgins.
‘Bungalows are in short supply and are super expensive compared to other types of housing. The leasehold and cladding crisis around flats doesn’t help either.
‘And although downsizing to a smaller home may make sense, the costs of moving can be overwhelming as one of the key reasons to move home is to release cash.
‘Downsizers can be hit twice as they will need to cover the cost of selling a larger property and this will incur estate agent fees of around 1.5 per cent of the price of the home.
‘But they will also need to pay stamp duty on the property they are buying which start at 5 per cent for any property above £250,000.’
No financial incentive: Taxes such as stamp duty and associated costs with selling and buying, such as estate agent fees, legal fees, surveyor costs and removal firms put people off moving
While homeowners should feel no obligation to move, it may in some cases make both practical and financial sense as having a large home can lead to increased expense and upkeep.
There will be many who will find they have benefitted from house price growth, which could free up some cash for retirement if they then sell and move to a smaller, cheaper home.
‘Some people in this position will own their home outright if their mortgage is paid off,’ adds Hopper, ‘and in the current market this puts them in a very strong buying position.
‘House prices have fallen across the UK over the past year, and cash buyers are often best-placed to secure the biggest discounts.
‘Freed from the need to be within school catchment areas, downsizers can live where they like, and we’re seeing strong demand from those who want energy-efficient, environmentally friendly homes that require minimal maintenance and have low running costs.’
