Mortgages  

Last-time buyer market set to increase by 50%

Last-time buyer market set to increase by 50%

The value of housing stock owned by so-called last-time buyers will grow by 51 per cent to £1.2trn by the end of this decade, according to research by Legal & General.

L&G has defined last-time buyers as the 3.3m homeowners who are 55 or over and living in larger homes and who are potentially willing to downsize.

The provider predicted that nearly half a million more households would join Britain’s last-time buyer market, increasing the number of households to 3.8m by 2020.

Article continues after advert

Nigel Wilson, chief executive of L&G said: “Last-time buyers are set to receive a massive boost to their home equity over the next five years, taking the overall value of their homes well past the £1trn mark.

“However, a lack of suitable properties for them to downsize into is in turn effectively cutting off the supply of sufficient homes for families in the UK.

“We need to make it easier for older people to even consider moving by relieving the onerous burden of stamp duty, creating better options for equity release and providing real alternatives for older people in terms of the types of home that they can live in and the infrastructure that surrounds them.”

Adviser view

Keith Roseburgh, founder of Midlothian-based Keith Roseburgh Financial, said: “The main reason for downsizing may be to help children, but hopefully there will be some money left over for the property owner too. This means they need to think about how to make best use of it.

“Of course, this will depend on the individual’s situation. Whatever they do, it should be in line with their plans for retirement and overall financial goals.”