Housing Minister Grant Shapps’ announcement that local councils should help pensioners downsize into ‘more suitable accommodation’ to free up much needed family homes should be applauded. Under the proposals, local authorities would take responsibility for maintaining and renting the vacated properties at affordable prices, handing any profit back to the elderly owner.
The Government believes the proposal would provide support for the elderly to move without having to sell their homes at a time when there is a shortage of affordable housing for young families.
We see this as a bold and sensible move – one we have advocated for many years. Britain has a housing crisis on its hands and according to The National Housing Federation the UK’s ‘chronic’ undersupply of homes is reaching crisis point.
80% of elderly people in the UK are homeowners and occupy many of these sought after family homes – property worth an estimated £3 trillion. Many of their properties are under occupied. According to research from the Intergenerational Foundation last year, there are 25 million vacant bedrooms in England. It stands to reason then, that if government can incentivise elderly people to downsize, they would be freeing up this valuable space for family. But – here lies the dilemma – how they will do this?
Firstly, if older people are going to downsize, it must be because they want to not because they are being pressurised. Secondly, there is a chronic shortage of suitable, purpose built retirement property in the UK for sale or rent – so a severe lack of the ‘more appropriate’ accommodation to which Mr Shapps refers.
So, whilst the scheme is undoubtedly a great idea and could put an end to the UK’s property problem it will only be workable if this problem is solved. We now need concrete plans on how government intends to deliver the increase in retirement accommodation. This is vital and without them, its plan simply won’t work.
