Shortage of alternatives 'keeps older people from freeing up family houses'

Thousands of older couples in Ireland who could leave the large family homes that no longer suit their lifestyle, thus freeing up homes suitable for younger families, are finding it impossible to make the move, a leading property professional in Mullingar has stated this week.

David McDonnell of Property Partners McDonnell says his firm regularly speaks with older homeowners who are ready to downsize but feel stuck. “There simply aren't enough appropriate properties available, especially in areas where they have built their lives,” Mr McDonnell told the Westmeath Examiner.

Limited financial incentives, and planning barriers are contributing to the issue.

“With the right policies and incentives, this group could play a major role in easing the wider housing crisis.”

As things stand, he says, downsizing, once seen as a practical and positive next step, has become a frustrating and often unworkable option.

“There is a significant shortage of single-level, energy-efficient homes located near existing communities and services, making it difficult for older people to move without compromising their independence or quality of life,” says Mr McDonnell.

“In addition, current tax and regulatory frameworks, including stamp duty and capital gains implications, often penalise older homeowners looking to sell and move into smaller, more manageable properties.”

Furthermore, he says, there are logistical challenges to downsizing, and there can be emotional challenges too.

As Ireland’s over-65 population is expected to nearly double by 2050, Mr McDonnell says it is time to recognise downsizing as a key lever in solving the housing shortage.

A range of policy recommendations have come from older homeowners and housing advocates.

They include encouraging the development of compact, accessible housing in existing communities that allows older adults to remain near familiar services and social networks; the introduction of downsizing grants or stamp duty relief to reduce the financial burden of moving to a smaller home and supporting the creation of high-quality, mixed-age housing schemes that meet the needs of older people without segregating them into isolated retirement complexes.

“Making downsizing easier would not only improve the quality of life for older citizens but would also help to free up much-needed family homes across the country,” Mr McDonnell concluded.