According to recent data released by the Centre for Ageing Better (CfAB), young people struggling to get on to the housing ladder face a new threat, which comes in the form of retirees competing for private sector rented accommodation.
Generation Rent, as those under-40s have become known, will be shocked to discover that, in the past two years, the number of older home owners choosing to sell up and rent in retirement, becoming known as Rightsizing, has almost doubled in a decade – from 254,000 in 2017, to 414,000 in 2017.
There are myriad reasons why more retirees are contemplating Rightsizing – moving to a smaller property can help start a new chapter in your life, as well as reducing home maintenance and energy charges, but releasing equity is clearly also a key factor.
And, according to a recent article in The Financial Times, “Many [Rightsizers] are parents or grandparents who want to free up assets to help their family on to the housing ladder via the Bank of Mum and Dad. For some, the motivation will be moving to a more desirable area. For example, couples may have substantial properties outside London, having moved to provide a family home when their children were young, and would love to move back to the capital now that they have more time to enjoy themselves.”
With so many options now available in the over-55 market place, obtaining the right independent advice can be key to making the right decision for your exact circumstances, and here at The Financial Planning Group, being able to offer our clients Estate Planning advice to help their children, or grandchildren, using Gifting or Trusts has become a specialty.
With 25 years’ experience helping individuals, families and businesses to place their financial affairs in context with their future goals and aspirations, we are here to provide a simple, structured, disciplined and reviewable planning service. We will change the fundamental relationship people have with their money to give them confidence and clarity in their own futures.
If you have any questions concerning, Trusts, Gifts, Inheritance Tax Planning, or to ensure your family are fully protected, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.