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Can we get the older generations to downsize?


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https://www.arcouk.org/sites/default/files/Too little too late__FINAL - June 2020.pdf

 

' if nothing is done – is a housing market heading for 20 million ‘surplus’ bedrooms by 2040, nearly two thirds of them in homes occupied by the over-65s.. '

 

'“If people lived in homes more suited to their needs, 50,000 fewer homes would need to be built each year.”

 

'Far too few dwellings are being built that cater for older people. Retirement housing has only accounted for about 125,000, or 2%, of all new homes built since 2000, but each year around 700,000 people turn 65 years of age.'

The report comes to the conclusion that government policy actively dissuades people fro down sizing. They have forced it on those who rent social housing, why not try to encourage those in private housing.

Currently those with young families seem unable to afford to move, and are enlarging all the smaller houses that first time buyers should be buying.  

The government may not be able to persuade people to downsize but, unfortunately, Covid 19 may well have the power to free up these unused rooms.

 

 

 

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45 minutes ago, lie to bet said:

'“If people lived in homes more suited to their needs, 50,000 fewer homes would need to be built each year.”

If people realised that eternal population growth is damaging in the short term and impossible in the long term then we'd not need to build any at all.

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2 hours ago, lie to bet said:

https://www.arcouk.org/sites/default/files/Too little too late__FINAL - June 2020.pdf

 

' if nothing is done – is a housing market heading for 20 million ‘surplus’ bedrooms by 2040, nearly two thirds of them in homes occupied by the over-65s.. '

 

'“If people lived in homes more suited to their needs, 50,000 fewer homes would need to be built each year.”

 

'Far too few dwellings are being built that cater for older people. Retirement housing has only accounted for about 125,000, or 2%, of all new homes built since 2000, but each year around 700,000 people turn 65 years of age.'

The report comes to the conclusion that government policy actively dissuades people fro down sizing. They have forced it on those who rent social housing, why not try to encourage those in private housing.

Currently those with young families seem unable to afford to move, and are enlarging all the smaller houses that first time buyers should be buying.  

The government may not be able to persuade people to downsize but, unfortunately, Covid 19 may well have the power to free up these unused rooms.

 

 

 

Yes.send care workers infected with CV19 to sort their needs, than within a few months many of them will be downsizing to a Coffin. Job done.

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4 hours ago, Riedquat said:

If people realised that eternal population growth is damaging in the short term and impossible in the long term then we'd not need to build any at all.

? but we’re always being told there’s no such thing as overpopulation and Europe needs MORE people!? They wouldn’t be lying to us to support a giant pyramid scheme, surely? ? 

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There’s very little encouragement for downsizing as it stands.

Some will need to free up equity, but those who don’t just face a whacking great Stamp Duty bill to move into a smaller house.

Where’s the point in that, especially in an economy where they have been taught that house prices only ever go up and there is a lack of other investments that provide a decent return.

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1 hour ago, worried1 said:

There’s very little encouragement for downsizing as it stands.

Some will need to free up equity, but those who don’t just face a whacking great Stamp Duty bill to move into a smaller house.

Where’s the point in that, especially in an economy where they have been taught that house prices only ever go up and there is a lack of other investments that provide a decent return.

Quite.

No one in their right mind would pay £100k for the privilege of moving from their 6 bedder with a big garden in a nice area  into some shoebox. For better to put the money into improving their current house and employing a gardener. 

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7 hours ago, lie to bet said:

https://www.arcouk.org/sites/default/files/Too little too late__FINAL - June 2020.pdf

 

' if nothing is done – is a housing market heading for 20 million ‘surplus’ bedrooms by 2040, nearly two thirds of them in homes occupied by the over-65s.. '

 

'“If people lived in homes more suited to their needs, 50,000 fewer homes would need to be built each year.”

 

'Far too few dwellings are being built that cater for older people. Retirement housing has only accounted for about 125,000, or 2%, of all new homes built since 2000, but each year around 700,000 people turn 65 years of age.'

The report comes to the conclusion that government policy actively dissuades people fro down sizing. They have forced it on those who rent social housing, why not try to encourage those in private housing.

Currently those with young families seem unable to afford to move, and are enlarging all the smaller houses that first time buyers should be buying.  

The government may not be able to persuade people to downsize but, unfortunately, Covid 19 may well have the power to free up these unused rooms.

 

 

 

Er, how do these people that live in houses that are too small for them afford to buy the houses that are too large (allegedly) for the older generation? Presumably some new government subsidy - "help to buy what you can't afford"?

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What about all the residential property that is included in foreign investor portfolios?

What do think will happen there if the Govt start to interfere?

I have posted before that Corbyn did not win in Dec 2019...the TORY'S did...with a large majority.

This will not happen.

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8 hours ago, Riedquat said:

If people realised that eternal population growth is damaging in the short term and impossible in the long term then we'd not need to build any at all.

It's quite likely IMO that most people know this already other than those who are lying to themselves.

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4 hours ago, AAA said:

All you need to solve this problem is a tax on real estate without any caps or loopholes to avoid it.

A proper property tax makes so much sense. An average new yorker pays abiut $8k a year in property tax, new york state it is more like $4k. Paid by the owner - not the tenant. 

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1 minute ago, msi said:

No need to push into Logans Run territory.  If the market functioned correctly, then downsizing would be the natural way to balance housing stock.

Yes indeed, but the system is never going to be set up for market efficiency.

It will continue to be set up for the benefit of those who buy and hold land.

And if you don't need to bother with the buy part, you might even get paid!

https://www.express.co.uk/news/politics/1286895/Dominic-Cummings-father-farm-parents-Durham

Quote

Website Farmsubsidy.org, which lists EU rural subsidies, reveals the Durham farm received almost €208,000 between 2000 and 2009.

While a separate website, operated by the Department of Environment, Food and Rural Affairs, confirmed additional payments of roughly £6,500 were made [...] “for practices beneficial for climate and environment” in 2017 and 2018.

A third, offline database, then revealed subsidies worth nearly £19,000 were paid out in 2014.

It is not clear when Cummings became the co-owner of the farm.

Of course, these payments will cease when we exit the transition period.

Oh wait...

https://www.sciencemag.org/news/2020/01/united-kingdom-embark-agricultural-revolution-break-eu-farm-subsidies

Quote

 

After the United Kingdom leaves the European Union at the end of the month, it will sever ties with Europe’s farm subsidy policies—and to many researchers, that is a good thing. This week, the U.K. government proposed radical changes to £3 billion a year in agricultural spending that will focus the money on benefits to climate, ecosystems, and the public. [...]

Under the bill, introduced to Parliament this week and expected to become law within a few months, farmers will be given subsidies not simply for cultivating land—the current EU system—but for delivering “public goods.” These include sequestering carbon in trees or soil, enhancing habitat with pollinator-friendly flowers, and improving public access to the countryside. 

 

Not all of this is bad, but it does mean you don't even need to actually farm to get money. 

Something tells me the payments for "public access" will be low.

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11 hours ago, “Nasty Piece of work” said:

Boris has succeeded in getting the older generations to downsize into 6 foot wooden boxes.  What a busy Boris!

or a bijou urn

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Why would they want to free up cash which means they lose their entitlement to welfare benefits and free social care at home?

Their house even if is worth millions is ignored for means testing as long as they never need to go into a care home. They also get to live in a nicer quieter home rather than a noisy flat! 

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18 hours ago, worried1 said:

There’s very little encouragement for downsizing as it stands.

Some will need to free up equity, but those who don’t just face a whacking great Stamp Duty bill to move into a smaller house.

Where’s the point in that, especially in an economy where they have been taught that house prices only ever go up and there is a lack of other investments that provide a decent return.

Equity release is a growing business......borrow the house, to pay the gardener, cleaner and carer.....your home is your pension, use it not lose it.....you can't take it with you.?

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17 minutes ago, winkie said:

Equity release is a growing business......borrow the house, to pay the gardener, cleaner and carer.....your home is your pension, use it not lose it.....you can't take it with you.?

Hadn’t thought of that, excellent point though. Why have the cost and hassle of moving when you can just magic up some cash from the equity fairy. No wonder people aren’t downsizing!

Also if everyone did this wouldn’t it really hit the tax take on inheritance? Seeing as there’s nothing left to inherit as it’s all been spent.

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19 hours ago, PeanutButter said:

? but we’re always being told there’s no such thing as overpopulation and Europe needs MORE people!? They wouldn’t be lying to us to support a giant pyramid scheme, surely? ? 

Any only yesterday we were being told how important immigration is and over populating the country even more is desirable. Those who disagree are obviously racist xenophobic bastards.

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On the subject of land value tax, the existing council tax broadly fills this role through its progressive bandings.

Most retired folk don't need the money of downsizing so financial inducements will be limited in success.

What stops them? Sentimental reasons as it's the family home of 40 years. The sheer amount on junk it's been filled with over that time would need to be cleared out. But there is the idea the spare bedrooms can host their children and grandchildren in future when they stay over. Or indeed a refuge for their own children in a divorce or split.

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  • 415 Brexit, House prices and Summer 2020

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