Retired downsizers struggling to sell homes, estate agents warn

Estate agents are seeing a surge in inquiries about downsizing from retired homeowners with 1.4 million over-65s saying they will consider downsizing in the next five years. However they warn that these houses are often harder to sell because they need a lot of work, according to new research from equity release advisor, Key.

Its nationwide survey found more than two out of five (44%) estate agents have seen a rise in inquiries from over-65s homeowners looking to downsize in the past year with the need to save money (80%) the biggest reason for selling followed by the desire for a more manageable home (78%).

For those downsizers who do manage to sell their properties, the estimate is that they manage to release on average £46,000 – in addition to reducing their household bills. However, one in three (32%) of downsizers have given up on selling in the past two years.

Major barriers to selling include dated décor and homes in a poor state of repair.

Would-be downsizers often have unrealistic expectations of how much they will make from the sale – 63% of estate agents say sellers expect higher prices for their home than they are likely to receive.

And downsizers also run into problems with finding suitable homes to move to. Around 77% of estate agents believe there is a shortage of homes for retired people to move to while 80% say there is a lack of homes suitable for those who are less mobile.