Sawbridgeworth and Bishop’s Stortford OAP retirees have to make tough choices with the onset of the cost-of-living crisis.
Growing inflation, unpredictable financial markets and the high cost of living mean many former retired Sawbridgeworth and Bishop’s Stortford people are returning to work in what has been dubbed the ‘great unretirement’. Some are even bringing forward their downsizing house move.
Looking at the changing job market, July saw the most significant month-on-month rise in OAPs working since records began in the 1990s when 1 in 23 of all the UK’s OAPs went back into employment.
That now means ….
1,170 Sawbridgeworth and Bishop’s Stortford over 65s are in gainful employment (i.e., 1 in 8 of them).
As a backdrop, the number of working 65-year-olds and above has been increasing since the mid-nineties when 503 Sawbridgeworth and Bishop’s Stortford OAPs were employed. Yet, July's figures were the largest monthly jump on record by quite a distance.
Looking at the changing property market, I have been speaking to many Sawbridgeworth and Bishop’s Stortford OAP homeowners who are having to bring their downsizing plans forward several years to survive the cost-of-living crisis. The money generated from the downsizing will cover their housekeeping and massive energy bills.
So why would someone want to downsize? Mostly, their homes are too big for their needs as their children have flown the nest decades before. The government classifies a property as under-occupied if it has two or more spare bedrooms.
How big is the under-occupation issue in the UK?
Of the 4.52 million British homes owned by those aged 65 and over, 3.04 million have at least two spare bedrooms (i.e., under-occupied). Looking locally…
12,215 of the 20,632 East Hertfordshire OAPs have two or more spare bedrooms.
You might ask why this is important.
Well, to start, it's holding back Sawbridgeworth and Bishop’s Stortford families that need the bedrooms and space these larger houses offer if the older occupants won't move on. Also, these larger homes cost more to run in terms of energy bills and other things such as building insurance and council tax.
From October (even with the recent energy bill cap) it will cost on average £354 per month in gas and electricity alone for a large Sawbridgeworth and Bishop’s Stortford 4-bed detached home
(where occupants are home all day).
So why are there so many mature homeowners in their 70s, 80s and even 90s still living in houses that are too large for their day-to-day requirements? There are several reasons for this. One is the obvious emotional attachment to the family home they have often owned since the 1970s and 1980s. The second is to escape the hassle and costs of the house move, and finally, the small number of suitable Sawbridgeworth and Bishop’s Stortford properties for them to buy to attract them to make a move.
The growing energy bills have provoked many of those mature Sawbridgeworth and Bishop’s Stortford homeowners, who maybe can’t or do not wish to get a job, to re-evaluate their home life strategy. I am seeing an ever-increasing number of mature Sawbridgeworth and Bishop’s Stortford homeowners downsizing (or, as I prefer, rightsizing) to diminish their monthly expenditures.
So how much could mature Sawbridgeworth and Bishop’s Stortford homeowners gain by downsizing?
The numbers are intriguing when looking at the average difference between the sale price and the subsequent purchase price of the average downsizer.
Sawbridgeworth and Bishop’s Stortford downsizers could unlock an average of £161,410 per household.
Not only will Sawbridgeworth and Bishop’s Stortford homeowners earn this lump of cash for their extended retirement, but they will also save themselves around £179 per month in lower energy bills, buildings insurance and council tax bills.
So, what are the options for mature Sawbridgeworth and Bishop’s Stortford homeowners?
Waiting 12 months to make a move might mean you are putting your Sawbridgeworth or Bishop’s Stortford home on the market as every other OAP homeowner puts their home on the market, meaning the dynamics of the local property market will probably be a lot different. Thus, the equity you release on the downsize could be much lower.
If you would like a chat about this, without any obligation, feel free to call Mackay Property on 01279 600 567 or email us on hello@mackayproperty.co.uk
