New market data has revealed valuable insights for property investors looking to target the downsizing and retirement markets – the locations where downsizer demand is strongest across Britain. With nearly a quarter of all homebuyers currently looking to downsize, the availability of suitable properties is a growing issue, and in some regions, supply is particularly low.
Across Britain, an estimated 23.1 per cent of homebuyers are actively looking to purchase a property of lower value than their existing home, unlocking equity and potentially boosting their retirement finances. The East of England (29.7%), South West (29.2%) and South East (28.1%) have the highest proportion of downsizers, followed closely by the East Midlands (26.1%) and Wales (25.5%).
However, while downsizers account for a significant share of the market, just 4.4 per cent of available properties are listed as such, making competition fierce for this type of property in some key areas.
Britain’s downsizer property hotspots
The regions where the most downsizer and retirement properties are currently listed for sale are:
- South East – Britain’s leading retirement property hotspot, with 5,545 available retirement properties, making up 7.7 per cent of all property listings in the region.
- South West – home to 3,536 retirement properties, accounting for 7 per cent of all listings, the second-largest proportion in the country.
- West Midlands – 1,816 listings, making up 4.7 per cent of all property listings
- East of England – 2,233 (4.6%)
- North West – 1,523 (3.3%)
The regions with low supply of downsizer and retirement properties
However, despite these figures, some regions have particularly limited stock of these property types, such as Scotland (2.0%), London (2.2%) and Wales (2.4%), where demand may outstrip supply.
Where demand is highest for downsizer and retirement properties
Data on properties that are already Sold Subject to Contract (SSTC) gives further insight, narrowing down where demand for downsizer properties is particularly strong. Across Britain, 27.3 per cent of retirement properties are already sold subject to contract (SSTC), with certain regions seeing even higher figures:
- Scotland – 42.9 per cent of all listed downsized properties are already SSTC
- Wales – 34.3 per cent SSTC
- North West – 32.3 per cent SSTC
- East Midlands – 31.2 per cent SSTC
Tim Simmons, Sales & Marketing Director at Regency Living, which conducted the research, commented: “Downsizers are a significant and influential force within Britain’s housing market and they have a direct influence on the number of homes available to second-steppers, which, in turn, impacts the number of homes available to first-timers.
However, finding an appropriate downsizer home isn’t always easy, especially for those who want to move into a retirement property that can offer the lifestyle they’re looking for alongside the sense of community, security and wellbeing that are so important in our golden years.”
What this means for investors
With downsizers making up a significant proportion of buyers facing limited supply issues, the market presents opportunities for property investors looking to target the sector.
