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News: Downsizing 'difficult' for empty nesters

Future empty nesters are considering climbing down the property ladder to improve their quality of later life, but are concerned rising house prices could mean their children do not move out until they are well into their thirties...

According to Yorkshire Bank research, more than one in ten parents are considering downsizing their home once their children leave the nest so they can free up funds to enjoy their old age. 

However, for some, downsizing could be a distant dream. One in four parents of young children think that should house prices continue to rise, their children will be in their mid thirties before they can afford to move out and buy their own property.

One in seven parents are so concerned by this they have even started a home fund to help their new born children take their first steps onto the property ladder in later life.

Improving lifestyle

Gary Lumby, Yorkshire Bank's head of retail, said: "With the current pensions crisis, climbing down the property ladder could provide one solution to parents who have little savings but are looking to retire and improve their lifestyle.”

"It's also encouraging to see so many parents are looking ahead, seeing how the property market is going and taking actions to prevent their children having to live at home longer than expected. Some may even be downsizing to free up funds to help their children on to the property ladder."

The bank’s research has found even when the kids do move out, downsizing may not be an option. One in ten are considering ways to minimise paying inheritance tax in their later years by moving parents or grandparents into their home.  This will enable them to sell their property and combine their assets at the same time.

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