Following further research that showed there are 3.3m UK homeowners aged over 55 looking to downsize, the firm said this generation of homeowners could help unlock housing stock for those with aspirations for a larger home.
According to the survey, over three quarters (78%) of 18 to 54 year olds hope to have their own garden, while 63% want their own parking space. A further 50% of respondents wanted easy access to public transport as part of their future home.
Those in the over-55s age group said being in close proximity to good healthcare facilities, having a private garden and a good sense of community were the most important features in the home they aspired to own.
Legal and General’s Last Time Buyer report published in June showed the typical older homeowner lived in a four bed house but would prefer to own a two bed property. The firm said this desire to downsize later in life could make valuable housing stock available for those aspiring to own a home with three or more bedrooms.
Stephen Smith, director, Legal and General mortgage club and housing (pictured), said: “As well as limiting the amount of choice in the market, the current lack of supply is also driving up house prices. This issue is affecting first-time buyers in particular, as unlike second-steppers, they aren’t able to transfer equity built up on their last property, which would have increased in value alongside house price inflation. Instead, first-time buyers are having to save money quickly so that house prices don’t rise faster than they can save. Saving for a deposit can be an arduous and lengthy task, and the sheer scale of house price inflation in recent years is causing people to postpone buying a house until later in life.
“This trend is likely to worsen unless more homes are built to keep up with the increasing surplus in demand. Only around 118,000 homes were built last year, which is well below the 250,000 new homes needed per year to bring balance to the market. The government needs to double its efforts to boost housebuilding sooner rather than later so that people across the market are able to achieve their homeownership dreams.”
