There’s a growing gap between demand and supply of bungalows – creating opportunities for investors.
The HomeOwners Alliance claims that 1.2m UK homeowners aged 55-plus have put plans to move on hold in the past two years.
That’s one in seven homeowners in this age group (14%) who wanted to move, but ultimately felt unable to. This is often because of the stress and upheaval involved, the lack of suitable homes, and a reluctance to leave their community behind.
Older homeowners are more likely than the average homeowner to cite these barriers:
- Stress of moving – 41% (compared with 35% of all homeowners);
- Shortage of suitable homes – 34% (vs 27% of all homeowners);
- Not wanting to move away from friends and neighbours – 23% (vs 16% of all homeowners).
The shortage of bungalows is also a major issue, with 38% of homeowners aged 55+ saying they would prefer a bungalow for their next move, making bungalows the most popular choice among this group.
However, builders are turning away from them, as National Home Building Council data shows they made up 11% of new homes in 1990, but just 1% in 2024.
While house prices for older homeowners (23% vs 35% of all homeowners) and moving costs (24% vs 28% of all homeowners) are also top factors, they appear to be less of a barrier for older homeowners than for younger homeowners.
Paula Higgins, chief executive of HomeOwners Alliance, comments:“Our research shows that too many older homeowners feel stuck in homes that no longer work for them but struggle to find an appropriate alternative.
“There is a huge demand for bungalows but hardly any get built anymore. With the UK’s rapidly aging population, we hope the government’s long-promised housing strategy looks at a better range of retirement housing, including single-storey solutions.
“No one wants to make their life more stressful and as we age the prospect of a house move can be overwhelming. Buying and selling a home is too uncertain, takes too long, and is too expensive.”
