Attitudes to renting have
certainly changed over the last twenty years and my analysis suggests this
change is likely to be permanent.
The Royal Institution of
Chartered Surveyors (RICS) predicted that the private rental sector is likely
to grow substantially by 1.8m households across the UK in the next 8 years,
with demand for rental property unlikely to slow and newly formed households
continuing to choose the rental market as opposed to buying.
Many residents now consider renting as a lifestyle choice, and not the predicament that some see these ‘Generation Renters’ as being confined in.
Many residents now consider renting as a lifestyle choice, and not the predicament that some see these ‘Generation Renters’ as being confined in.
My real
concern for Stamford homeowners and Stamford landlords alike, is our more mature
homeowners. In a previous article, I
stated that Stamford’s current senior citizens (65+ year olds) were sitting on £844.03m
of residential property. However, I
didn’t talk in depth about the ‘Baby Boomers’ (50yr - 64yr olds) and what their
properties are worth. Neither did I
discuss how the current state of affairs could be holding back those younger
residents.
In Stamford,
there are 1,399 households whose owners are aged between 50yrs - 64yrs and
about to pay their mortgage off. That
property is worth, in today’s prices, £444.5m.
There are an
additional 1,626 ‘mortgage free’ Stamford households, owned by 50yr - 64yr
olds, worth £516.7m in today’s prices, meaning...
Our local ‘Baby Boomers’ and senior citizens are sitting
on £1.80bn worth of Stamford property
These Stamford
Baby Boomers and senior citizens are sitting on 5,681 Stamford properties and
many of them feel trapped in their homes, and hence I have dubbed them
‘Generation Trapped’.
Recently, the
English Housing Survey stated 49% of these properties owned by the ‘Generation
Trapped’ are under-occupied - that is, classed as having at least 2 bedrooms
more than needed. These houses could be
better utilised by younger families and blended families, but research carried
out by The Prudential suggest in Britain it’s estimated that only 1 in 10 older
people downsize, while in the USA for example 1 in 5 do so.
The growing numbers of older homeowners who want to downsize
their home are often put off by the difficulties of moving. The charity ‘United for all Ages’, suggested
recently many are put off by the lack of housing options, 19% by the hassles
and associated costs of moving, 14% by having to declutter their possessions
and 14% by family reasons, such as staying close to children and grandchildren.
Helping mature homeowners to downsize at the right time will
also enable younger people to find the homes they need – meaning every
generation wins, both young and old. However, to ensure downsizing works, as a country
we need more choices for these ‘last time buyers’.
Theresa May and Philip Hammond can do their part and
consider stamp duty tax breaks for downsizers, our local council in Stamford
and the planning dept. should play their part, as should landlords and property
investors to ensure Stamford’s ‘Generation Trapped’ can find suitable property locally,
close to friends, family and facilities.
david@upp-property.co.uk
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