For years, the idea of “downsizing” has been sold as a win-win. Older homeowners release equity, move into something smaller and easier to manage, and in doing so free up family homes for the next generation. On paper it sounds simple. In practice, it’s proving anything but.

Recent figures show more than a million over-55s have abandoned or postponed plans to move. The reasons vary, yet two themes come up again and again: the stress of moving and the lack of suitable homes. Bungalows are the classic example. In the 1990s, around 1 in 10 new homes was a bungalow. Today it’s closer to 1 in 100. Demand is high, supply is negligible, and the result is gridlock.

The impact is being felt across the market. Families who would happily move into larger homes are stuck waiting for them to come onto the market. Older owners, often living in properties that no longer meet their needs, feel trapped. And developers, more focused on higher-density housing or luxury apartments, are often reluctant to build the kind of single-storey homes or accessible flats that would truly appeal to downsizers.

Taxation and policy add another layer. Stamp duty, transaction costs, and now the looming prospect of a new property tax all act as disincentives. Why pay thousands to downsize when the options are limited and the bill may be even higher? Some have called for “downsizing relief” in stamp duty, arguing that if the government is serious about freeing up housing supply, it needs to make moving less punishing.

Then there’s the emotional side. Moving in later life isn’t just about bricks and mortar. It can mean leaving behind neighbours, gardens, and familiar communities. For many, the alternatives on offer feel like a step down in quality of life rather than a fresh start. That’s a hard sell, no matter how rational the financial argument.

All of this matters far beyond the over-55s. If older owners can’t or won’t move, larger homes don’t circulate, families can’t trade up, and the flow of housing gets blocked. It’s a chain reaction, and right now the chain is seizing up.

On this week’s Property Quorum, we’ll be tackling the downsizing dilemma head-on. Gareth Wax will be in the chair, joined by myself, Hamish McLay, alongside Juliet Baboolal, Chris Gilsenan and Zahrah Aullybocus. We’ll look at why downsizing isn’t working, what’s holding people back, and whether changes in design, policy, or taxation could finally unblock the system.

One thing is clear: the downsizing conversation isn’t just about older homeowners. It’s about the health of the housing market as a whole. Until there are more small options for those in big houses, the entire system remains under pressure.

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