Savills Portugal

ONS population projections estimate that the number of people aged over 65 in England is set to increase by 3.5 million between 2023 and 2040, to 14.5 million. This represents an increase of over 1 million every five years.

Many will be looking to trade in their family home and downsize, and reasons for doing so vary. Some are motivated by a desire for a more manageable, easily maintained property in a convenient location. Others may be looking for somewhere smaller because their children have left home, or they want to free up some capital to supplement their pension during retirement or help a family member to get a foot on the housing ladder.

According to our research, the over-55s now account for 75 per cent of all housing equity in the UK. Once their kids have flown the nest, this demographic typically gives 30 per cent of the equity in their old home to millennials to help them step onto the housing ladder and saves 70 per cent for themselves.

But, there is a new kind of downsizer at large in the UK housing market – one who is not only cash-rich, having amassed considerable property equity over the years, but is also energetic, modern, outward-looking and young at heart.

In fact, the new downsizers’ property priorities are similar to those of affluent young professionals with dual incomes and no heavily dependent children. Our statistics show that around a quarter of those buying a luxury new build in UK towns and cities are over 60 years old, eschewing the notion that most retirees look for a tranquil bungalow by the sea, or a peaceful country retreat. As well as designer kitchens, bathrooms and all the mod cons, they are looking for proximity to shops, bars, restaurants, theatres and galleries, with easy access to international airports.

The new downsizer’s wish list still includes important factors like security and accessibility. However, the latter is now more likely to mean lift access to a chic, spacious apartment with plenty of entertaining space. Security, meanwhile, is often less about the owners’ personal safety anxieties and more about their aspirations to lock and leave and to travel the world, safe in the knowledge that their property is wind and water tight and secure.

Like the majority of buyers in today’s market, energy is a key concern: the costs of lighting, heating and hot water within a new build are, on average, half those of second-hand properties in England and Wales, while in Scotland there’s an average saving of more than a quarter, and this is adding to their appeal.

Today’s housebuilders who overlook catering for this increasingly important market, and understanding their needs and aspirations, do so at their peril.

Here is our selection of properties currently on the market that are perfect for the new downsizer.