Around 3.5 million households in England headed by someone over 55 are looking to downsize, yet only about 12,000 age-restricted new build homes are completed each year across the whole UK. That gap means many older buyers are navigating a market that wasn’t built with them in mind. Whether you’re moving to a smaller property, buying for the first time later in life, or helping a parent find the right home, the rules, costs, and schemes look different after 55.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
That equity figure varies wildly by region. A downsizer in the North East might release around £28,000, while someone in London could free up £185,000. The point isn’t the number itself — it’s that the financial picture for an older buyer depends heavily on where they’re moving from and where they’re going. Schemes like Older People’s Shared Ownership and the First Homes discount exist specifically for this age group, but they come with their own rules and limits. Here’s what you actually need to know.
Four things to know before you start looking
One term you’ll hear a lot is equity release. That’s the cash you free up when you sell a larger home and buy a smaller one. It’s not free money — it’s the difference between what you sell for and what you buy for, minus fees. What I tend to notice is that people focus on the sale price of their current home but forget that moving costs, stamp duty, and legal fees eat into that equity. Worth weighing against the actual cash you’ll have after the move.
What downsizing actually costs — and what you get back
The headline figure for downsizing sounds good: release equity, lower your outgoings, move somewhere more manageable. But the full cost picture includes stamp duty, legal fees, survey costs, removal expenses, and sometimes estate agent fees on the sale. On a £250,000 purchase, stamp duty alone could run to £2,500 if you’re not a first-time buyer. Add legal fees of £1,000–£1,500, a survey at £500–£1,000, and removal costs, and you’re looking at £5,000–£6,000 before you’ve unpacked a single box.
That regional gap matters. A downsizer in the North East releasing £28,000 might see a third of that eaten by costs. Someone in London releasing £185,000 has more breathing room. The trade-off is that London property prices mean the new home costs more too. My first move would be to get a full breakdown of all transaction costs before committing to a sale — not just the estate agent’s estimate.
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| Region | Average equity released | Typical moving costs (estimate) |
|---|---|---|
| London | £185,000 | £6,000–£8,000 |
| South East | £120,000 | £5,000–£7,000 |
| South West | £85,000 | £4,500–£6,000 |
| East Midlands | £52,000 | £4,000–£5,500 |
| West Midlands | £48,000 | £4,000–£5,500 |
| North West | £38,000 | £3,500–£5,000 |
| North East | £28,000 | £3,000–£4,500 |
Common mistakes older buyers make — and how to avoid them
Assuming you qualify for every scheme
Most government schemes are aimed at first-time buyers. The First Homes scheme, for example, gives a 30–50% discount but only if you’ve never owned a home. If you’re an existing homeowner looking to downsize, you won’t qualify. The Older People’s Shared Ownership scheme has no first-time buyer requirement, but it caps your ownership at 75% and has an income limit of £80,000 (£90,000 in London). Check eligibility before you fall in love with a property.
Overlooking the 95% LTV mortgage option
The Mortgage Guarantee Scheme runs until June 2025 and lets you buy with a 5% deposit on properties up to £600,000. It’s available to all ages, but it’s not for new builds. If you’re over 55 with a small deposit, this could be a route — but you’ll need a repayment mortgage, not interest-only. Lenders are extending maximum ages at the end of mortgage terms, so don’t assume you’re too old to borrow.
Ignoring council downsizing schemes
Some councils offer financial incentives of £1,000–£5,000 to cover removal costs, plus priority access to smaller new build housing association properties. These aren’t widely advertised. You have to ask your local council directly. What I’d do is call the housing department before you start viewings — that £5,000 could cover your entire removal bill.
Not factoring in service charges and ground rent
Retirement properties and age-restricted new builds often come with service charges for communal areas, building insurance, and sometimes a warden or concierge. These can run £1,500–£3,000 a year. Ground rent on leasehold properties adds more. A lower purchase price doesn’t always mean lower monthly outgoings. Ask for the full service charge history before you make an offer.
How to buy a home after 55 — the practical steps
Work out your budget and equity position
Start with what your current home is worth and what you owe on it. The difference is your equity. Subtract moving costs, stamp duty, legal fees, and estate agent fees. That’s your real cash available. If you’re a first-time buyer, check your savings and what you can borrow. The Mortgage Guarantee Scheme lets you put down just 5%, but you’ll need to pass affordability checks. A financial advisor can help you model different scenarios.
Choose the right ownership route
You have several options depending on your circumstances. Standard Shared Ownership lets you buy 25–75% of a property and pay rent on the rest. Older People’s Shared Ownership caps you at 75% but charges no rent on the remaining 25% once you reach that share. First Homes gives a 30–50% discount but is for first-time buyers only. The Right to Buy scheme lets council tenants buy their home at a discount — over-55s qualify if they’re tenants. Each route has different income caps, property price limits, and resale rules.
Consider developer part-exchange schemes
Some developers will buy your existing home at 90–95% of its market value and use that to fund your new build purchase. You skip the hassle of selling on the open market and avoid estate agent fees. The trade-off is you get slightly less than full market value. For older buyers who want a guaranteed sale without a chain, this can be worth the discount. Ask the developer directly whether they offer part-exchange on the development you’re looking at.
Check for upcoming leasehold and planning changes
The Leasehold Reform (Ground Rent) Act 2022 already banned ground rent on most new residential leases. Further reforms are expected that could make it easier to extend leases or buy freeholds. If you’re looking at a leasehold retirement property, check how many years are left on the lease — anything under 80 years can make it hard to sell later. Planning policy is also shifting toward more age-restricted housing, but the current rate of 12,000 units a year isn’t keeping up with demand. If you find a suitable retirement development, don’t wait too long to decide.
Frequently asked questions
Can I get a mortgage after 60? ▾
What’s the difference between OPSO and standard Shared Ownership? ▾
Do I have to be a first-time buyer for First Homes? ▾
What happens if I sell a Shared Ownership property? ▾
Are there downsizing grants for pensioners? ▾
Can I use the Mortgage Guarantee Scheme on a retirement property? ▾
The real opportunity is in the timing
The gap between 3.5 million over-55 households wanting to downsize and only 12,000 age-restricted homes being built each year means demand far outstrips supply. That puts upward pressure on prices for suitable properties. If you find the right home, acting quickly matters more than waiting for a better deal. The equity you release today might not stretch as far next year if prices rise. Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Homeownership grants to help you buy a house and lot.
Sources and Further Reading
Beyond the bricks: understanding the true cost of UK home ownership — A breakdown of all the costs that go beyond the purchase price, useful for budgeting your move.
New-builds.co.uk (2025). Government support for over-55s buying a new build home. 🔗
Restless (2025). Are there government schemes to help over-fifties buy a home? 🔗
