Stephanie McMahon
Head of Research
The over-50 baby boom generation are cannily looking to their future many years in advance by downsizing early.
The over-50 baby boom generation are cannily looking to their future many years in advance by downsizing early.
Releasing stored equity in property has allowed many to plan for their retirement ahead of time through investing in not one but two properties - using one as a town or city bolthole and the other as a rural holiday home until retirement. This generation is more healthy, wealthy and active than ever before, becoming an era of ‘superboomers’ driving the housing market over the next 5 to 10 years.
Dr Ros Altmann, the government's Business Champion for Older Workers, has said this week that the new ‘superboomers’ are spearheading a social revolution changing the UK’s perception of old age. With no set cut-off date in employment and often faced with little or no pension, the rules in retirement have changed. The over-50’s are selling their family home, often as their largest financial asset typically worth upwards of £800,000, in order to finance a second life opening the path for freedom and adventure.
This generation of empty-nesters are typically equity rich and cash poor. Very cleverly, they are embracing life and seizing the opportunity to find the property of their dreams whilst in reach – and who could blame them! Subsequently, our regional offices are selling more 4 to 6 bedroomed family properties whilst smaller town houses and apartments are getting snapped up within weeks.
These savvy ‘superboomers’ are often buying two smaller homes instead of one as an effective way of spreading wealth and can mean a potential rental income or holiday home before eventual retirement. This forward planning, whilst rural and coastal house prices have remained relatively low, has seen Strutt & Parker’s viewing and offer figures on 2 to 3 bed properties in villages and towns rocket.
Superboomers have been quite clear to voice their objections to living the same way as their parents did in retirement. Often being in good health and with active lifestyles, they desire to live where they can continue to have their established lifestyle minus the day job. Because of this, we believe there is a need for ‘platinum places’ – mixed communities that are part of a town, offering things like fast broadband, theaters, farmers markets, gyms, swimming pools, and ultimately inclusion.
One third of the British population is currently over-50 and official figures show that by 2030, the number of people aged 60 and above will reach 20 million, indicating that the ‘superboomer’ is here to stay.