Although new housing is appearing in towns and villages across the UK, it seems these estates are not including homes which appeal to the over-55s. The focus to date has been on building new homes for first-time buyers and families, but a swell in the numbers of elderly people looking to move to these out-of-city areas may have to change the minds of councils and developers.

The Royal Institute of British Architects is urging ministers to make it mandatory for developers to build new homes which are accessible and appealing to more mature people and disabled people. They should include features such as wider doorways and staircases, have access to open spaces and be within easy access of social and healthcare facilities. Many older people are still living in their three or four-bedroom homes, long after their family have left.

Amongst the recommendations3 made include mainstreaming age-friendly design, removing barriers in the planning system that restrict the delivery of age-friendly homes and providing better information and support for people who want to move home, including piloting fiscal incentives to support older people to move home.

3RIBA, July 2019

Earlier this year, the government announced plans to scrap two types of tax relief for landlords who sell a property that was once their home. Homeowners in these circumstances are often referred to as ‘accidental landlords’, as when they originally acquired the property it was not with the intention of letting it out. They may choose to do so because they are having trouble selling, are relocating or they may have inherited it.

The clock is ticking

The new rules will take effect from 6 April 2020 when the tax relief, known as principal private residence relief, will be reduced from the existing extension of 18 months to nine months. So, when a property that was once a main home is sold, the tax payable is on the amount it goes up in value while it is let out. Currently the owner is allowed to add 18 months to the amount of time they lived at that property; from April next year they will only be able to add nine.

Lettings relief is to be scaled back at the same time, meaning that landlords selling their former home after renting it out will no longer be allowed to shelter £40,000 of the gain from Capital Gains Tax (up to £80,000 for couples). From April next year, only landlords who continue to live in the property will qualify for this benefit.

The Financial Conduct Authority does not regulate some forms of tax advice.

The new rules will take effect from 6 April 2020 when the tax relief, known as principal private residence relief, will be reduced from the existing extension of 18 months to nine months.

The average time a homeowner in the UK stays in their property is 21 years*. This contrasts with the 1980s, when a fast-rising property market encouraged a move every eight years on average. Now though, high prices and Stamp Duty, combined with the other costs of moving, are encouraging us to stay put and spend money improving our properties.

There are variations across the country, with some of the most expensive areas of London (Kensington and Chelsea) showing an average 35 years between moves and only 15 years in parts of Kent (Dartford), South Derbyshire, Salford and East Lothian.

*Zoopla, July 2019