“Bungalow crisis” - Shortfall in specialist senior housing

27th February 2017

The International Longevity Centre UK recently published research that concludes that there is currently only sufficient specialist accommodation for 5% of the over-65s. Great Britain is facing a bungalow crisis, as single-storey properties are selling for hugely inflate prices in comparison with multi-storey.

All of this rather undercuts the Government’s new housing white paper (February 2017), which attempts to stimulate the trend of older people downsizing. The lack of suitable housing, along with the costs of moving, shows this strategy could well be fatally flawed.

I believe that any debate about financial planning in or close to retirement should include the possibility of downsizing, but should not rule out other options.

A recent report on property and pensions shows that 63% of people recognise that their home is worth more than their pension fund, meaning that the lifestyle that our retirement craves and deserves would not be achievable without leveraging the value in our property.

We also know that 82% of property owners want to spend their last years in their family home.

The debate around the white paper will no doubt continue, and I for one would like to ensure that as many people as possible consider all of the viable routes to their dream retirement lifestyle. Downsizing will suit - and be feasible - for some, but not all. Equity release, similarly, will not be right for everyone, but it should at least be part of every conversation between the 55+ homeowner and their adviser.

Why not get in touch and see how we can help?

Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back

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