Downsizing in Later Life: Lessons Learned from a Personal Housing Upheaval

For the past couple of months, I’ve been grappling with one of the biggest upheavals in my long life: moving into my own home after more than 14 years out of the property market in the wake of a protracted divorce. Compared with the house I owned with my ex-wife, the new abode is a dramatic example of ‘downsizing’ in later life – something us oldies (over 60s) are being encouraged to do by a mix of policy geeks and politicians, to help free up a frozen housing market for those younger than ourselves. I’m happy to do my bit.

Hopefully, the 14-year jump from being joint owner of a four-bedroom town house in Hertfordshire to sole buyer of a tiny but rather cute two-bedroom, late Georgian mid-terrace home in Wokingham, Berkshire, will be ultimately rewarding – both personally and financially. It’s a place I can truly call my own and, in time, stamp my mark on every inch – from the art I hang on the walls through to the array of bedding plants that will adorn the narrow but longish garden and, hopefully, draw approving nods from my very friendly neighbours. But the moving and downsizing haven’t been without their trials and tribulations. Far from it. I now understand why downsizing in particular is not for everyone in later life, although it can help boost your finances. It’s an option you shouldn’t rule out.

Finding a Place

Moving home is always stressful, yet like most things in life it gets more difficult as you age, and pension decumulation – rather than accumulation – becomes the order of the day. Finding a suitable property for your particular personal needs in later life is trickier than when you were younger and stairs were not a problem. For many, health issues have to be factored into the equation.

Most stay put for all kinds of reasons, from the dread of moving out of a home they have lived in for most of their adult life to the sheer cost of moving. But some bite the bullet and relocate, with many also downsizing. A slice of movers opt for a home in a block of flats designed specifically for the over 60s, with companies like Churchill, McCarthy & Stone and Pegasus Homes specializing in this area. While friends report happiness in these bespoke retirement properties, enjoying camaraderie and on-site help, steep service charges and difficulty selling can be issues.

Such a purchase was never on my radar. I’m too much of a free spirit and young at heart. For seniors who love their independence, moving from a big home into a bungalow can prove a shrewd step, although these properties are rare and often over-priced. My chosen location, Wokingham, is an expensive place to buy, and bungalows were out of my price range.

My house-buying budget was strictly governed by accumulated cash: a share of the eventual sale proceeds of the family home, inherited cash from my mother, and tax-free cash from a pension fund diminished by a divorce settlement. I wasn’t interested in a mortgage and was conscious of not tying up all my cash in bricks and mortar, wanting a pool of savings for security or in case work came to a sudden end. I also want to travel while my health is good, a passion shared by my partner Leonie, who also downsized four years ago to fund her travels.

Location Considerations

Choice of a new home in later life can also be restricted by ties to family, a need to stay close to friends, and travel considerations. My relationship with Leonie would have been tested if I had chosen a property on the south coast over staying in Wokingham, despite being tempted by Worthing for its property market value. According to property website Rightmove, the average price for a house in Worthing is just short of £383,000, compared to approaching £548,000 in Wokingham.

We toyed with the idea of Worthing, but it wouldn’t have worked as Leonie has family commitments in Bracknell, which is near Wokingham. So, after much deliberation, I chose Wokingham over my desire for a home within touching distance of the English Channel.

My New Home

Local decorator Nigel describes my home as ‘quirky,’ but I love it. It has two bedrooms with a downstairs extension housing a kitchen awash with skylights. The house will likely be my last. I call it my 'hobbit' home due to the low ceilings. Some people of a similar age might be put off by the steep stairs, especially with the toilet located downstairs, but a stair rail has been installed for safety. Who cares if I am the new Bilbo Baggins of Wokingham? My hobbit home will do for me, especially given its proximity to the railway station, providing good transport links to London.

The Downsizing Process

Although downsizing is a great way to release tax-free cash in later life, it’s not without its drawbacks. It ratchets up the home-moving stress a notch or six, as a lifetime of possessions need to be pruned before you move. And of course, there are stamp duty charges, surveyor’s and solicitor’s bills, as well as removal costs. My ancillary costs came in at £15,000, which I consider on the low side. Since moving in, I’ve spent an additional £5,000 on decorators, carpet fitters, and various home improvements. A new roof will also be needed before the year is out.

A big hit on my pocket, so I understand why many elderly people stay put in large homes rather than move to something more manageable. Some say they would only downsize if they were incentivised, for example, by being eligible for lower stamp duty rates. From a societal point of view, encouraging elderly owners of large homes to downsize makes some sense. Yet it’s not as if most downsizers don’t already do well financially from the current system with the opportunity to release vast amounts of equity – all tax-free – as a result of the long-term growth in house prices.

On the decluttering front, I did chuck a lot of stuff away before moving into my new home at the end of April. Yet it just isn’t big enough to accommodate a lifetime’s worth of books and football memorabilia. The result is that I still rent a unit to house many of these possessions which have been in storage since 2012. It really is time to let them go.

And then there is the stress of the move itself. I had no choice but to give away a beautiful eye-catching arched cabinet I bought when I separated from my wife, as it was too big for my new home. Understandably, the removal man who received it was delighted.

Post-Move Challenges

Since moving in, the stress has not dissipated. On occasion, all I have wanted to do is curl up in a ball and cry as a stream of tradespeople have let me down, or I haven’t managed to get my television or phone to work. Finding a carpenter in Wokingham has proven difficult, with many disappearing after initial contact. I’ve also screamed when discovering niggly little faults with the house that the surveyor’s report didn’t highlight, or my visits prior to purchase didn’t detect. For instance, floorboards that go creak in the night and a garden that has more ‘potholes’ than your typical Berkshire A-road.

Oh, and there’s a family of rats living between my house and my neighbour’s. Choose your ‘last’ home with great care.