Market Comment from Lee Fenn-Tripp, Director of Downer & Co
This was a question posed to me on social media a few weeks ago, after my article about our mature members of Newbury society and the fact many retirees feel trapped in their homes. After working hard for many years and buying a home for themselves and their family, the children have subsequently flown the nest and now they are left to rattle round in a big house. Many feel trapped in their big homes (hence I dubbed these Newbury home owning mature members of our society, ‘Generation Trapped’).
So, should we incentivise Newbury’s over 65’s to downsize?
Well, in the original article, I suggested that we as a society should encourage, through building, tax breaks and social acceptance that it’s a good thing to downsize. But should the Government incentivise pensioners?
Well, one of the biggest reasons pensioners move home is health (or lack of it)
Looking at the statistics for Newbury, of the 4,626 Homeowners who are 65 years and older, whilst 2,863 of them described themselves in good or very good health, a sizeable 1,387 home owning pensioners described themselves as in fair health and 376 in bad or very bad health.
Over 8% of Newbury home owning pensioners are in poor health
But if you look at the figures for the whole of West Berkshire Council (not just Newbury), there are only 682 specialist retirement homes that one could buy (if they were in fact for sale) and 1,298 homes available to rent from the Council and other specialist providers (again- you would be waiting to get your foot in the door) and most older homeowners wouldn’t feel comfortable with the idea of renting a retirement property after enjoying the security of owning their own home for most of their adult lives.
My intuition tells me the majority ‘would be’ Newbury downsizers could certainly afford to move but are staying put in bigger family homes because they can’t find a suitable smaller property. The fact is there simply aren’t enough bungalows for the healthy older members of the Newbury population and specialist retirement properties for the ones who aren’t in such good health … we need to build more appropriate houses in Newbury.
The Government’s Housing White Paper, published a few weeks ago, could have solved so many problems with the UK housing market, including the issue of homing our aging population. Instead, it ended up feeling annoyingly ambiguous. Forcing our older generation to move with such measures as a punitive taxation (say a tax on wasted bedrooms for people who are retired) would be the wrong thing to do. Instead of the stick – maybe the Government could use the carrot tactics and offered tax breaks for downsizers. Who knows – but something has to happen?
.. and come to think about it, isn’t the word ‘downsize’ such an awful word? I prefer to use the word ‘decent-size’ instead of ‘down-size’- as the other phrase feels like they are lowering themselves, as though they are having to downgrade themselves in their retirement.
The simple fact is we are living longer as a population and constantly growing with increased birth rates and immigration. So, what I would say to all the homeowners and property owning public of Newbury is … more houses and apartments need to be built in the Newbury area, especially more specialist retirement properties and bungalows. The Government had a golden opportunity with the White Paper – and were sadly found lacking.
And a message to my Newbury property investor readers whilst this issue gets sorted in the coming decade(s) – maybe seriously consider doing up older bungalows – people will pay handsomely for them – be they for sale or even rent? Just a thought!
If you want to know what (and what would not) make a decent buy to let property in Newbury, then one place for such information would be the Newbury Property Blog. Please visit www.newburypropertynews.co.uk view our pages on Facebook or pop into our office in Cheap Street in Newbury.
