Around 3.8 million households could be motivated to move to smaller homes “unlocking capacity in the housing market,” data from Barclays shows.
The high street bank’s comments come after the government has pledged to build 1.5 million homes over the next five years — to begin to plug a 4.3 million shortfall of homes across the country.
However, several housing bodies say one way to address this shortage is to encourage older couples to move out of larger three- to four- bedroom family homes to make way for young families.
Around 85% of owner-occupied homes in England and Wales contain one or more spare bedrooms and are therefore under-occupied, according to a Barclays report called ‘Right-sizing Revolution: unlocking untapped capacity in the housing market’.
The survey says: “An estimated 1.7 million households are already open to right-sizing within the next one to two years.
“However, with the right policy interventions this could rise to as many as 3.8 million estimated under-occupiers encouraged to right-size at some point in the future, freeing up much-needed ‘spare’ capacity.”
The study points out that getting older couples to move from family homes can be a wrench.
It says 61% of under-occupiers “feel an emotional attachment to their current home because of memories and the effort they have put into their property”.
But it adds that 45% of under-occupiers are motivated to move due to cost pressures, with 39% saying they want a home that “requires less maintenance,” while 26% add they would like “a cheaper home”.
The report puts forward five solutions to “tackle some of the barriers to right-sizing and tap into existing motivations for movers”.
• Broaden perceptions of under-occupiers beyond just older people – 36% of under-occupiers are aged between 45-64 years old
• Target this group with financial incentives, such as stamp duty rebates for downsizers
• Making home buying simpler and less stressful “would benefit all home movers, including right-sizers”
• Encourage local authorities to work with housebuilders, local media and key stakeholder groups to improve the visibility of new housing new developments
• Build more retirement and age-suitable housing
Barclays head of mortgages and savings Mark Arnold says: “Housing supply shortages are well documented and we fully support the government’s ambitious house-building plans.
“However, a stronger, more holistic strategy is needed to tackle the immense issues faced by the housing market, including the challenges faced in the demand side.”
Barclays report includes a nationally representative online survey of 4,324 adults conducted by research agency Ipsos.
Propertymark chief executive officer Nathan Emerson adds: “While right-sizing will likely free up a bit of extra cash and lower expenses through energy bills, reduced maintenance costs and in some cases a smaller council tax bill, there are additional costs which can add up and deter people from making their all-important move.”
“Therefore, it’s really important for the UK Government to reform the current Stamp Duty regime for downsizers and incentivise people to right-size to help create further fluidity in the housing market to free up larger properties for growing families in prime locations. As well as this, a focus needs to be placed on ensuring more suitable homes, such as bungalows are being built in the right places making it easier for older people to find appropriate homes.”
