The Central Housing Challenge of Our Time
Age Pyramid, London 2015-2040
- The UK needs 3 million more houses by 2025. That’s why we hear so much talk about building more and more starter homes.But actually, almost all the growth in population is in people 55+. They already have homes, but 4.6 million (33%) of them want to downsize.64% of those (2.94 million) own their home with no mortgage – totalling £400bn of un-mortgaged housing wealth looking to move.
This group of people is asset rich but often cash poor
They don’t move because there’s nowhere suitable to buy.
On top of that the pain of the move is too off-putting.
If they DID move then their present homes would be ideal for families with kids or, if further developed, for first time buyers.