Why aren’t older people downsizing to smaller homes?

As long as older people hold on to houses that are bigger than they need, there is a knock-on effect not just on the rest of the housing market, but on the wellbeing of those who wish to stay put, writes Hannah Fearn

Moving into a smaller home in mid-life has more than just financial benefits (Getty/iStock)

About six years ago, my parents decided to sell the family home and move house. They were by this point well into their sixties, and were searching for a new property that would, in all likelihood, be their final marital home. A priority for them was to be somewhere closer to me and my husband – grandchildren were forthcoming – but also somewhere to enjoy retirement. They sold a four-bedroom house and bought... a five-bedroom house.

This is the problem with downsizing: the people who would benefit most simply don’t want to do it.

A decade ago, a high-profile group of MPs chaired by Lord Best carried out an inquiry into downsizing and retirement housing, seeking ways to free up larger family homes and prevent overcrowding elsewhere in the housing market. The group heard evidence from experts and researchers showing that moving into a smaller home in mid-life, rather than at a point of crisis in later life, has more than just financial benefits. It can improve long-term health and wellbeing, and even contribute to longevity. Lord Best even proposed a Help to Buy-style scheme to support the over-60s to find more suitable housing, and a stamp duty cut as a direct financial incentive to downsize.