Last Time Buyers now own £938bn of UK housing stock and will reach the £1 trillion mark this year, according to new research released today by Legal & General, the FTSE 100 financial services group, and Cebr, the economics consultancy.
30 Apr 2018
According to Legal & General’s research, there are now 3.1 million Last Time Buyer households in the UK, with the number of homeowners who have considered downsizing rising from 32% to 39% in the past three years, demonstrating the demand for better later living options for over 55s. Last Time Buyers make up over a quarter (26%) of all UK households over the age of 55.
The UK has a chronic undersupply of age-specific properties, with only 7,000 homes delivered to this sector last year making it the most under-supplied area of the housing market. Legal & General’s research shows that of the Last Time Buyers who had considered downsizing in the last five years but didn’t, 49% said it was because there were no suitable properties available, with a further 29% stating that the properties that were suitable were too expensive.
Phil Bayliss, Head of Later Living at Legal & General, said: “Last Time Buyers account for more than a quarter of the total number of households aged over 55. This report highlights the crucial role they could play in unlocking the wider UK housing market, further demonstrating the need for Government to recognise this sector through key policy changes. If rightsizers were able to move to a property more aligned to their desired lifestyle and needs, vast swathes of homes would be freed up for growing families and second steppers. This, when matched by the huge health benefits proven to come from age appropriate housing, such as a 50% reduction in GP visits and 40% reduction in NHS spend, means that increasing the number of properties available to these buyers is the most efficient way to help solve the UK’s housing crisis and spiralling NHS costs linked to our ageing population.”
Key statistics from Legal & General’s study of “Last Time Buyers” (LTBs) include:
Phil Bayliss, Head of Later Living at Legal & General, continues: “A large section of our housing stock – worth nearly £1 trillion – is under-occupied and owned by people over the age of 55. It is vital that the over 55s are able to make and act on the choices that are right for them."
A last time buyer is a UK homeowner aged 55 or over living in a house too big for their needs who would like to downsize
Inspired Villages Group is a best in class operator and developer of later living accommodation. Creating safe, secure, social and comfortable village environments in which residents can celebrate the freedom of later life with flexible care arrangements, Inspired Villages offer an outstanding lifestyle choice for people whose existing homes no longer suit their needs.
It is backed by Legal & General and has a total of seven village sites, located in Warwickshire, West Sussex, Devon, Kent, Cheshire and Hampshire. With Legal & General’s long term financial support, Inspired Villages Group will continue to acquire several sites per year. Creating vibrant villages on the edge of and within the UK’s towns and cities, it is looking to build where people want to live, close to family, friends and facilities.
Its philosophy is to create beautiful homes, unique environments and thriving communities that are age appropriate and can support people in making the most of their wellbeing as they move through later life. The Chairman, and vision behind Inspired Villages, is Keith Cockell, who brings decades of experience in the conception and creation of retirement communities across the UK. The senior management team is headed by CEO, Jamie Bunce with the core management team in place to develop and operate a significant number of new communities across the UK in the next few years.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Capital (LGC) is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients in order to achieve improved risk-adjusted returns for our shareholders. LGC has built its capabilities in a range of alternative sectors, including in residential property; specialist commercial real estate; clean energy; alternative credit; and venture capital, which are all supported by long-term structural growth drivers, meet a financing gap and respond to a scarcity of supply that is underpinned by enduring societal needs.
Its purpose is to invest society’s capital for society’s benefit. Investing in the real economy and supporting the Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.
Legal & General has invested over £29bn in levelling-up regional economies, including through major UK-wide regeneration schemes and has recently made a commitment to enable all its new homes to operate at net zero carbon emissions from 2030.
*at 31 Jun 2021