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Elderly People Trying To Downsize Are Dominating UK Property Market
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The UK property market is currently dominated by elderly people trying to downsize and cash in on the equity left in their properties. Many of the people currently trying to sell their homes are couples, who's children have all now left home and who have finished or nearly finished paying off their mortgage and now want to downsize and release some of the money tied up in the equity in their homes.

Around forty percent of people currently trying to sell their homes are people trying to sell a larger property to buy a smaller house. But with only around twenty-five people looking to move to a bigger house and trade up, there is a lack of demand and lack of finances to allow these people to sell their larger houses. The only exception to this is in London where there are more high end cash buyers and more equity in houses.

The main reason most people now give for trying to sell their house is to downsize from a large family home to a smaller property. These people are usually from the baby-boom era and have seen a large increase in the value of their property, so meaning there is a lot of equity tied up in the house, but the onerous are usually short of liquid cash. With the cost of living now far higher and very low interest rates being achieved on savings and poor returns on investments and pension schemes, many retired people are struggling to pay their monthly bills.

For a healthy housing market, there needs to be a enough people willing to trade up to bigger houses and spend more and borrow more, as well as people looking to downsize and release equity. Many parents are trying to release equity from their houses to help their adult children cover debts or raise a deposit to fund their own first purchase.

Many more people are facing unemployment or fear losing their jobs and redundancy and so are looking to decrease their monthly expenditure by moving to a smaller property or they need to supplement their pensions by releasing cash tied up in their houses. There are now far more older people at the top of the housing market chain, looking to downsize, than first time buyers and others looking to move up the housing ladder.

With the majority of people looking to downsize and not trade up, there is a cap on house prices and there was no increase in property prices in May and ten percent less houses being put up for sale on the open market.

Recent increases in mortgage rates, the uncertainty over the euro and the double-dip recession have all taken their toll on an already fragile property market. With mortgage lenders demanding larger deposits and imposing strict borrowing conditions, it is difficult for people to get a mortgage and move up the property ladder. First time buyers are finding it more or less impossible to get on the property ladder. More and more people are looking at renting a home but with a shortage of suitable houses to rent, the rental market is also struggling.

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