A survey of Family Building Society members found that around half of older homeowners were reluctant to downsize due to concerns they would lose links to their friends, family and local community.
The study was in support of a recent report published by Radix Housing Commission, Resizing, Rightsizing, which detailed a number of measures that could encourage people to downsize.
It suggested that the government pilot a stamp duty relief scheme, which mirrored the relief available to first-time buyers, for older homeowners to reduce the cost of moving.
The report found that as well as the financial cost of stamp duty, three in five respondents said access to local amenities would be a key factor in whether they moved, especially if they were less able to drive. A further 54% of respondents said there was a lack of suitable homes available, particularly bungalows.
Further, of the 200,000 newly built homes each year, Radix found that just 5,000-7,000 were suitable for later living, below the 50,000 needed to accommodate the ageing population.
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Alistair Nimmo, director of marketing at Family Building Society, said: “Our survey shows that there are a variety of reasons why the elderly are not downsizing. Whilst stamp duty remains a key deterrent, the loss of friends, being further away from family and potential lack of local amenities are just as important. On top of those reasons, there is a distinct lack of suitable properties available, particularly bungalows.
“The government has a lot of work to do if it is to encourage older homeowners to downsize. Releasing underutilised family homes on to the market would encourage others to move up the housing ladder providing more opportunities for first-time buyers and growing families.”
