Millions of homeowners aged 55 and above are putting their downsizing plans on hold, creating a potential logjam in the UK housing market, new data reveals. The primary cause for this hesitation is the looming threat of new property taxes expected to be announced in the Chancellor's Autumn Statement.
The 'Wait and See' Approach Grips the Market
According to a warning from the Audley Group, a staggering 2.4 million over-55s could be postponing their move. The data shows that a significant one in five are adopting a "wait and see" approach, directly linked to the political and fiscal uncertainty. This comes ahead of Labour Chancellor Rachel Reeves's crucial Autumn Budget, scheduled for November 26.
Reports suggest that the government is considering the introduction of a mansion tax on properties valued over £2 million. This prospect is already sending ripples of anxiety through the demographic most likely to downsize from larger family homes.
Practical Barriers and a Failing Housing System
The research from Audley Group provides a deeper look into the concerns of older homeowners. It found that 47 per cent of over-55s who are considering downsizing admit that their plans will be affected by new property taxes. However, financial fears are not the only barrier.
Practical concerns are equally powerful. The survey highlighted that 56 per cent are worried about the physical effort of moving, while 63 per cent of those surveyed over the age of 65 expressed fear about the risks of physically moving their belongings. Furthermore, 46 per cent are concerned about the sheer cost of moving, a figure mirrored by the 48 per cent who worry about the financial outlay.
There is also a profound dissatisfaction with the housing options available. 36 per cent of potential downsizers worry about limited housing choices, with 42 per cent specifically concerned about the lack of smaller, suitable properties.
Industry Leader Warns of Systemic Risk
Nick Sanderson, the CEO of Audley Group, issued a stark warning to the government. "The government must tread very carefully on the introduction of property taxes," he said. "Already, the rumours are having an impact with potential downsizers putting plans 'on ice' or even shelving them altogether."
He emphasised the critical role this segment plays in the overall health of the housing chain, stating, "Disincentivising downsizing is a really risky game to play, with movement at the top of the ladder critical to the whole housing system."
Sanderson also pointed to the emotional and systemic failures exacerbating the situation. He noted that the decision to downsize is already fraught with practical and emotional barriers, from the effort of moving to saying goodbye to a family home filled with memories. "However, the fact that so many people have a limited choice is a failure of our housing system," he argued. "There is a clear and pressing need for more age-specific housing options that are designed to meet the needs of people as they get older, with supportive communities at the core."
