Downsizing more popular with young people than the over-55s
According to new research by IFA Hargreaves Lansdow, around 12% of 18-34-year olds are expecting to move to a smaller property this year – while only 3% of those over 55 are thinking of downsizing.
The younger generation are considering moving to smaller properties to avoid rising rents – in some parts of the country, the average rent is increasing faster than the average salary. In addition, they are being penalised by more restrictive mortgage lending which will limit the amount they can borrow. This will be very frustrating for first-time buyers as in some cases the expected mortgage repayment cost per month will be less than the cost of renting.
In the next year, typically about 16% of the population will look to move – and this is likely to be split fairly evenly between downsizers, relocators and up-sizers.
However, there is good news for the property market too as 18-34-year olds are still the largest market for moving up the property ladder. 9% of them are expecting to up-size, compared to just 1% of those over 55, not surprisingly.
The property market relies on up- and down-sizers to keep it moving. The research indicated that 3% of older people plan to downsize in the short term, while 22% expect to at some point.
Jamie Smart, Director of smarthomes commented, ‘While the research tells us downsizing is more popular with the younger generation, our younger customers are mainly looking to up-size. The local market is really buoyant, and we have lots of new properties coming onto the market all the time, perfect for first time buyers or those wanting their first family home.’
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