Research from Linden Homes shows retirees are no longer downsizing purely for practical reasons, but rather to use the equity they have built up in their property over the years to fund a new phase of life, including holidays and college courses.
However, the perception of retirement has changed dramatically over recent years, and more and more retirees are now focusing on enjoying life once they have finished work by travelling, going back to college or buying a new car. It is estimated that one third of the property market is trading down at any one time, releasing on average £112,000 per transaction.
The main drivers for downsizing from a large family home to a smaller, more manageable property such as an apartment or bungalow, have traditionally been the prospect of minimal home maintenance, having fewer rooms to clean and a smaller garden to care for.
Philip Davies, chief executive of Linden Homes, says: “People retiring now are of a property-rich generation, and many of them are using their equity wisely both to buy a more appropriate home and fund an increasingly active lifestyle.”