This downsizing trend is affirmed by a survey conducted by Barratt London, noting that among this group of homeowners, a staggering 76% of respondents to the survey, which was targeted at those aged 50+ living in London, were empty nesters. 71% own their property outright, and 70% live in a property with three or more bedrooms.
However, despite reports of many city dwellers fleeing the capital due to the pandemic, for these equity-rich Londoners, downsizing does not automatically involve moving away from the city.
Whilst 67% agreed with the statement, “Downsizing presents an opportunity to move to a different area”, only 32% of over 50’s agree with the statement, “Downsizing means moving further away from London”. The level of agreement with this last statement falls further to just 21% amongst over 50’s currently living in Zones 1 & 2.
Key motivations for downsizing are a mix of financial and wellbeing.
74% of over 50’s in London who have already downsized or planning to do so attribute financial motivations to downsizing. This includes motivations such as reducing property maintenance (54%), lowering household bills (46%), financing retirement plans (30%), and releasing equity (27%). Whilst half of the survey respondents (48%) ascribe their reasons for moving as health-related, such as improving wellbeing (20%), conducting a healthier lifestyle (12%), greater access to green space (9%) and improving their immediate environment (14%).
Beyond the expected upheaval of moving home, 41% of over 50’s in London highlight stamp duty costs as the highest factor that will discourage them from buying a downsized property. This rises to 52% amongst those who have downsized already and 47% for those planning to downsize.
Unsurprisingly then, downsizers were found to be looking for a new lifestyle centred on delivering convenience and relaxation. The survey reveals that having private outdoor living space (51%), such as a garden or balcony, was number one on the list as the most important factor when downsizing, followed by dedicated off-street parking (37%) and proximity to family and friends (36%).
The survey did highlight gender differences, however. Women are likely to place more importance of private outdoor living space (59%) and proximity to family and friends (44%) whereas men are likely to place more importance on views of open space from the property (29%) and fast transport links to central London (29%).
The need for green space was again seen when asked which elements of their life they value more since lockdown, with 70% putting access to private outdoor space as their number one, closely followed by proximity to family (65%), maintaining physical health (65%), maintaining wellbeing & mental health (65%), and access to outdoor public spaces and parks (63%).
Pam Reardon, Director of Sales and Marketing at Barratt East London, commented: “This shift in priorities is one of the big reasons why Ridgeway Views has resonated so well with this category of buyers. It is a Zone 4 location but located within the Mill Hill conservation area, perched on a hilltop overlooking the Totteridge Valley. There is a balcony or terrace with every home here, and we’ve planted over 4,000 trees for a real back-to-nature atmosphere.”
Pam concluded: “Many of our buyers have moved from larger period homes in neighbourhoods such as Harrow, Hampstead and Highgate, looking for access to friends and family locally. A new-build uniquely offers them low maintenance, security and connectivity.”
“The best of both is hard to find, but we’ve struck a chord here at Mill Hill.”
