Retired sellers hoping to downsize unable to find younger buyers
As the cost of living for younger generations continues to grow, older homeowners who need to downsize are finding themselves unable to find a buyer with the necessary financial resources.
For many millennials, hearing the constant tirade from older generations about how they complain too much and “don’t know the meaning of a hard day’s work” helps to illustrate how little empathy many older people have regarding the cost of living for young people today.
In return, younger people often draw attention to the fact that many baby-boomers enjoyed a care-free existence in a thriving economy – voting for long-term investment gains that benefitted themselves as opposed to long-term stability for future generations. The British youth also feel the lack of sympathy they receive in regard to their inability to save money stems from the fact that many older individuals have never felt the negative impact of this societal shift in their own lives.
However, a growing number of those in retirement age are beginning to see the plight of the youth now that they are choosing to downsize their homes and are failing to find buyers who can afford them.
In many ways, the decrease in the number of UK homeowners is indicative of a country that fails to invest in the areas that need it most. After all, if an economy is powered by the expenditure of its population on goods and services – how is the economy supposed to grow if the majority of residents are only spending their hard-earned cash on rent?
Have things changed that much?
By the time they reached 45, 70% of all baby boomers were registered homeowners – whereas less than half of all millennials are likely to achieve the same. In fact, there has been a 7% drop in the total number of homeowners in the UK since 2003 alone.
With today’s living costs accounting for three times the proportion of earnings needed in the 1960s, and more than double the number of residents living in rented accommodation – the cost of which, incidentally, has risen by 15% in the last six years alone – is it so shocking that younger generations cannot afford the homes that the elderly wish to sell?
Sadly, the bad news doesn’t stop there. Today, the average cost of a deposit is over £32,000, and even if young couples with children are able to save the required amount of money to qualify for a mortgage, they are penalised for having children in the first place, as lenders believe that increasing childcare costs could hamper their ability to meet the required monthly repayments.
So what options are there for older individuals who cannot find a buyer for their home?
If an individual of retirement age needs to sell their house fast due to health issues or would simply prefer to be closer to family, they can consider renting their home out and use the income as a pension. Unfortunately, the majority of people who currently rent are doing so because they can’t afford a home themselves, and as a result, are less likely to be able to afford the rental fees for a large prestigious house.
They can stay put, and hope that in the future the economy will recover to a point that younger generations will have enough disposable income that they could make an offer – but given the current shape of the economy, this is unlikely to happen any time soon.
Luckily, there are house buying companies such as National Homebuyers who are willing to buy any house for cash at competitive prices, regardless of situation or location. And with a sale often completed within seven days, older homeowners are able to downsize without the stress often associated with the traditional selling process.
Hoping to downsize as soon as possible? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.