Alongside first-time buyers, downsizers are expected to be the leading buyers in the London property market in late 2023 and early 2024.
Jump to: What sellers can expect from downsizers | Why downsizing: A new perspective
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Over the past few weeks, buyer activity across the London market has increased slightly from summer seasonal levels. Buyers coming to market today tend to be goal-oriented and serious, and sellers are focusing on this small but powerful customer.
This year, the national spotlight on mortgage rates is having an impact on homeowners with mortgages and dreams of expanding. If you don't need to move now, sellers may want to prepare for a seasonal Boxing Day spike in buyer activity as they wait for mortgage rates to fall in the new year.
On the other hand, activity among those not connected to the mortgage market, especially downsizers, remains strong.
Downsizers are typically buyers over the age of 55 who want to pay less for a home or buy a smaller home than they currently live in. There are several factors that explain why this will be a very important demographic during the 2023-2024 transition.
• An aging population: The 2021 Census confirms that there are more people in the UK than ever before and that the group of downsizers is larger than ever before.
• Motivation for cash buyers: The mortgage market may currently be a hurdle for some home buyers. According to the Office for National Statistics, by 2020 almost three-quarters of over-65s in England will own a property outright, and many will be cash buyers. They are in the best position to downsize and get the best bang for their buck while others wait to see how the mortgage market moves in early 2024.
• Cost of Living: Downsizers always have the advantage of lower running costs, but when you factor in the cost of living, the incentive to make the move now can be even greater.
Influence of first-time buyers
Another demographic expected to move into the new year is first-time buyers. First-time buyers and downsizers often work together. Young professionals are eyeing rent prices in the London market and are considering buying their first home instead, but they will need help from mom and dad's bank. Mom and Dad have built up equity in their home over the past 20-30 years, but as their children move out, they need less space. Parents can therefore save money by selling their home, supporting their children's first steps up the property ladder, while at the same time finding a more suitable home as a vacant home.
If you're looking to sell your home to a downsizer or first-time buyer, book your free property valuation with Foxtons today.
Want to sell your family home? It's a good idea to lay the groundwork for your New Year's sale.
Reduce your space and get more space to fit your lifestyle
A common theory for downsizers is that they move out of the house they bought decades ago, near good schools and families with young children, and move into a quiet villa in a quaint rural village. However, we are seeing many empty nesters and retirees abandoning the traditional rural escape in favor of the lifestyle benefits of new, more central developments.
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“New build homes have always proven to be very popular with downsizers,” says Joel Ellis Duffy, new home sales director at Foxtons. Everything from our simple purchasing process, lateral space, elevators, new appliances (within warranty), on-site facilities and property management means downsizers can relax and enjoy their home. ”
“Having spent decades caring for large homes that are often energy inefficient, the lower utility costs associated with new construction are very appealing,” adds Joel. If you're retired or simply empty-nested, we can help you find your new home. These buildings are designed with downsizing in mind and focus on a sense of community and social gatherings. These developments are located in some of the most accessible locations in this great city. ”
When your dream home makes new dreams come true
Downsizing gets a bad rap in our industry (hence the rise of the term “rightsizing”). There's so much emphasis on the memories you've made and the idea of having to go straight from your dream family home to a nursing home. However, the number of elderly people is increasing more than ever, and the type of lifestyle they want to lead is becoming more important.
Now that you've spent years building up your wealth, it's time to think about what you can do with it. Perhaps you might opt for a new home to buy your next property outright, fund your retirement plans, or secure a vacation to spend the winter in Spain. A new home will have fewer unnecessary running costs and will take less time to run, giving you more time and money to spend on hobbies, social clubs, vacations, and whatever else makes up your golden years.
If you would like to downsize, please create a My Foxtons account or contact your local Foxtons office. Let us help you find your perfect place.
