You are here: Home - Mortgages - Remortgage - News -

Demand for downsizing on the up but sellers ‘unrealistic’ on price

0
Written by: Paloma Kubiak
10/08/2017
Two in five estate agents report a surge in inquiries from older homeowners looking to downsize to raise cash, but many are unrealistic about the price they can achieve from the sale.

Research from Key Partnerships revealed 44% of estate agents have seen a rise in downsizing inquiries over the past year. However their customers are struggling to find suitable homes.

In fact, 62% of estate agents are warning sellers they have unrealistic expectations about how much they will raise from moving to a cheaper home – if they can find one at all.

This is because 56% of agents said there is a shortage of homes on the market suitable for downsizers and 68% warn there are not enough homes available for older buyers who are less mobile.

As a result, 16% of prospective downsizers have given up or failed to find a new house in the past two years.

The research found that estate agents are increasingly suggesting lifetime mortgages as an alternative way to raise money for downsizers. Around 44% of estate agents said they regularly suggest equity release plans which enable customers to take out money while staying interest-free in their home.

Will Hale, director at Key Partnerships, said: “When downsizing works it can be an ideal solution for older homeowners but sellers need to be realistic about how much they are going to make and it appears many are struggling to find suitable homes.

“The shortage of homes for sale is pushing up prices for downsizers who may struggle to raise the sort of money they are expecting to help with retirement planning while also having to go through the upheaval of moving home.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @YourMoneyUK: Government plans cut to minimum shared ownership stake https://t.co/Sqsh6S0Tm0
  • RT @WeareJust_PR: “Families tend not to talk about money and death. But if we don’t talk about these themes it becomes very hard to make pr…
  • RT @RoyalLondon: Voluntary NI contributions to state pensions have risen - @stevewebb1 hails this as “great news that the message is gettin…

Read previous post:
TalkTalk fined for exposing customers to scam risk

An investigation found TalkTalk left the personal details of thousands of customers at risk of abuse from fraudsters.

Close