A Just Retirement study of over 1,000 homeowners found that the high financial costs of selling a home, as well as the emotional value of the house, has turned people towards other options to fund their retirement.
Of those surveyed, 55% had been living in their homes for over 25 years, with a further 24% having lived there for between 16 and 25 years.
The firm says the resistance to downsizing among older people is prompting homeowners to look at equity withdrawal schemes.
Other reasons for not downsizing included the hassle of house-hunting and moving into a new property, the need for additional space for friends and family to visit, lack of suitable properties in the local area and the poor state of the current housing market.
Stephen Lowe, director at Just Retirement, commented: “The traditional view is that downsizing is a way older people can free up some capital and cut their living costs.
“It is only when you question those people thinking about going through with it that you get a sense of how reluctant they really are.
“What seems an easy financial decision from a practical point of view is often a huge emotional wrench that people seem keen to avoid.
“There was a widespread feeling that downsizing was a major upheaval and probably worked best if people did it relatively early in retirement or in response to poor health.
“But interestingly, a few had downsized and been disappointed by the results after the costs were taken into account.
“People were also very aware that there are a lot of retirees have the same idea and there is a very restricted supply of the right kind of homes in the right areas.”
