Barclays has highlighted that implementing measures to assist families in “right-sizing” their homes could significantly boost housing supply in England and Wales. The bank proposes that encouraging households to move into properties that better suit their needs could free up an estimated 3.8 million homes, unlocking additional capacity in the housing market.
The report by Barclays suggests that offering targeted financial incentives, such as grants, vouchers, or the ability to offset moving costs against stamp duty, could motivate people who are under-occupying homes to consider downsizing. Additionally, the construction of more “age-suitable” housing is recommended, with a call for local authorities to incorporate such planning into their infrastructure strategies.
Barclays also advocates for the establishment of a group consisting of industry representatives to explore ways to simplify and streamline the home-buying process, lessening the stress often associated with moving home. Research commissioned for the Barclays Property Insights report revealed that 85% of homeowners find moving to be a stressful experience.
Furthermore, the analysis conducted by Barclays and research company Ipsos indicates that around 1.7 million households may be open to right-sizing within the next one to two years. By implementing further interventions, this number could potentially increase to as many as 3.8 million households. However, certain barriers to right-sizing were identified, with emotional attachment, memories, and maintenance costs cited as significant factors preventing homeowners from moving.
Mark Arnold, head of mortgages and savings at Barclays, emphasised the need for a comprehensive strategy to address the challenges faced by the housing market. He stated that the proposed public policy recommendations aim to assist individuals in finding accommodation that better suits their needs while simultaneously alleviating pressure on the housing supply chain.
David Thomas, chief executive at Barratt Development, echoed the sentiment, highlighting the importance of removing barriers to enable a more diverse group of individuals to move into homes that are more manageable and cost-effective. Collaborative efforts between housebuilders and local authorities are seen as crucial in increasing the availability of energy-efficient homes that cater to varying consumer needs.
In conclusion, industry experts stress that overcoming reluctance to downsize is key to injecting more liquidity into the housing market and optimising the existing housing stock. Measures to reduce stamp duty burdens on downsizers are viewed as a potential incentive to encourage more transactions, potentially boosting tax revenues. The focus is on delivering high-quality retirement housing options to provide a broader spectrum of choices for those looking to downsize in the property ladder.