Technological University Dublin ARROW@TU Dublin

School of Surveying and Construction Media Management

2015-11

Let’s Look to UK to Solve Problems of our Ageing Population

Lorcan Sirr Technological University Dublin, [email protected]

Follow this and additional works at: https://arrow.tudublin.ie/beschrecmed

Part of the Urban, Community and Regional Planning Commons, and the Urban Studies and Planning Commons

Recommended Citation Sirr, L. (2015) Let's look to UK to solve problems of our ageing population. The Sunday Times 08.11.2015. doi:10.21427/8kx4-e542

This Article is brought to you for free and open access by the School of Surveying and Construction Management at ARROW@TU Dublin. It has been accepted for inclusion in Media by an authorized administrator of ARROW@TU Dublin. For more information, please contact [email protected], [email protected].

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License 08.11.15 / 15

As more sellers Relief of look to downsize, we offer advice price rise on how to go about it and the that ends pitfalls to avoid. By Cian Molloy my debt

f the experience of estate agent Gordon Lennox is anything to go by, anyone hoping to downsize in their LINDA locality will have problems. Lennox has a house that has served him and DALY Ihis family well for 15 years, but now histhreechildrenhave grownupand MARKET moved out, the five-bedroom property in Delgany, Co Wicklow, is too big for WATCH him and his wife. “We rattle about in it like two dry peas in a box. It feels especially empty in the winter,” Lennox says. “I’ve looked around for somewhere smaller that meets our needs and I can’t say that I’ve seen anywhere that fits the bill. We like living in Delgany and we’re looking for somewhere about 1km away.” Lennox is considering building his ownproperty.“IfIgotheself-buildroute I’ll be able to have a home that has suffi- cient space. I’ll also be able to ensure it he most glorious thing happened this has an energy rating of A. Our current week. My neighbours, four doors up, homehasaC1ratingandthedifferencein Tput their house on the market. My the annual cost of heating would be the initial delight didn’t stem from any price of a short holiday.” ill-feeling towards them but rather because One problem faced by downsizers it gave me the opportunity to check out how such as Lennox is that, particularly in much an identically sized property to mine Greater Dublin, they may end up with a would sell for. And that’s when the really home with a small living area and tiny wondrous thing happened: the house is on kitchen. Yet Maxine Pilkington, of Ben- the market for just €25,000 less than the netts Auctioneers in Sandymount, price I bought mine for in 2005. Dublin, says about 20% of its properties It was a landmark, triumphant, jump- are being sold by downsizers. for-joy moment, unexpected in many ways “There’s a lot of movement within the because I’ve never registered the area — most people who live in Sandy- It’s important to do burdensome weight of negative equity. Yes, mount want to stay in Sandymount,” she your research and my home is in the strictest sense still in says. “The majority of those selling are plan properly, negative equity but I’ve paid more than moving up the property ladder but a particularly when €25,000 off the mortgage in the past 10 significant number are downsizing.” downsizing later in life years, so I could conceivably sell it and walk Downsizers in Sandymount are away without any debt attached. often older people and those have been It got me wondering about how it must thinking of moving for a while, be for those couples who have split and Pilkington says. “They want a 1,000 sq ft spent the past seven years haggling over a property at least, but they would prefer pile of stones. If I felt such relief, I can only 1,500sqftbecausethey want somewhere begin to imagine the enormous sense of with a large reception area where they liberation they must feel when their homes can entertain friends, plus a large master escape the clutches of negative equity. bedroom and guest room. Some people may regard my news as a “A lot of them are looking for proper- pyrrhic victory because there’s no yield on ties with outdoor space, be it a garden or my 10-year investment, but if there’s one balcony. There aren’t many like that.” BRINGING lesson I have learnt in these past seven years While downsizers may feel pressured it is that only property investors should to sell and buy in the improving market, regard the market as a route to making a Justin Moran, head of advocacy quick buck. Zero debt is a lot more palatable and communications at Age Action, than the €100,000-plus negative equity I advises caution. experienced at the worst of the recession, if “This might well be the house you’re I could have sold the house at all. going to live in for the rest of your life, so DOWN THE HOUSE Any exultation will be kept to a minimum takeyourtimeandensureyou’remaking because I’m mindful that many people still the right decision — and plan ahead find themselves with properties worth properly,” he says. “It’s important not to considerably less than their purchase price. think about only your current needs For those moving from Dublin to Dublin: Dundrum, Sandyford and Leop- days of stamp duty at 7%, when the And those who bought close to the top may but also where you might be in 10 or Wicklow town and its surroundings, for ardstown. They would be hoping to buy whole process would have cost more have to wait years to regain the value of 15 years.” instance, “downsizing” can mean something here for €350,000- than 10% of the value of the largest of the their property — if they ever do. Adjusting to a new place can be tough buying a cheaper property of equivalent €450,000 while selling their property two properties, according to Lennox. for retired people, Moran says. “A move size, or perhaps bigger. It can also mean for €450,000-€700,000. “Now you can expect to pay your to aquietpartofthecountrymightsound freeing yourself of a mortgage or getting Downsizing can be a lifestyle choice ONE COUPLE WENT estate agent 2% plus VAT to sell your Price watch: North Co Wicklow like a great idea, but will you struggle to a lump sum to use as a nest egg for rather than for financial planning pur- home, legal fees of 1% plus VAT, and meet new people? Have you checked retirement. poses, according to Lennox. “Selling a TO SPAIN UNTIL stamp duty at 1%. So if you’re down- Hollybrook Park Bray what kind of health facilities there are? “Manywillhave seenthevalueoftheir four-bedroom home in Dublin and sizing, expect it to cost about 4% of the 4-bed semi-detached If you find it more difficult to drive as pensionsandotherinvestmentshitbadly buying something more modest may THEIR PURCHASE value of your existing home,” he says. time goes by, is there a decent public by the financial downturn,” says Eugene mean that you now have the money to Perhaps the biggest problem for 2010 €350,000 transport system? Dooley, an estate agent who moved from also buy a two-bedroom apartment in downsizers is that many banks no longer WENT THROUGH. IT 2015 €350,000 No Change “Ifyou’veidentifiedsomewhereyou’d Stillorgan, Dublin, to Wicklow town, Spain or to get that yacht that you’ve offer bridging loans, which can create like to move to, try to find out everything 16 years ago. always wanted.” WAS CHEAPER logistical nightmares. about it. Visit it and talk to people in the “Downsizers form about 40% of our Selling and moving to a new property “I know of one couple who sold their Holywell Kilcoole community to get a sense of the place. market and are mainly from south is less expensive than it was during the THAN LETTING HERE house, put all their belongings into 2-bed apartment Makesureit’ssomewhereyou’regoingto storage and went off to Spain. They told 2010 €233,480 enjoy, where you can feel safe and their solicitor to contact them and tell comfortable.” them to come home when the purchase 2015 €236,000 Up 1.1% Pressure to downsize can be strong for of the new property had gone through,” older people, particularly those on small Lennox says. “It was cheaper to go off Thornbury Delgany fixed incomes who are struggling to pay The lowdown to Spain than to have a short-term 4-bed detached the local property tax. lease here.” “The freezing of the tax until 2019 in Downsizing from a large Another issue when you move to a 2010 €524,000€52 000 last month’s budget is very welcome, but property can leave you smaller home is what to do with excess 2015 €605,000 Up 15.5% we still know pensioners who are strug- with extra money in the furniture and belongings gathered over gling to pay and who resent the sugges- bank. And then you can the years. tion from some that they should sell up spend it on whatever you “The best thing to do is to take a two- Charlesland Greystones and move,” says Moran. like — be it an apartment in pronged approach,” Lennox says. “A sk 2-bed apartment “It’s unreasonable to expect an older the sun, a smaller place at = family and friends if there’s anything 2010 €212,000 person, particularly one who might be home or that yacht you've they would like to take, and then sell the living alone, to simply abandon a home always dreamed of. The rest via a reputable sales room or donate 2015 €220,000 Up 3.8% andcommunityof20yearsinwhichthey world is yours. + your excess belongings to a charity shop feel safe to move somewhere else.” — but often they won’t want to take it.” Let’s look to UK to solve problems of our ageing population

urope is going grey, very having worked for an average developer-led, society has to long-term rental model, no far) and 850 sq ft to 950 sq ft for a grey. In 1800 no country of 35 years). make do with what the developers single-person housing model, no two-bedroom. While many had a life expectancy The housing issue facing provide, and developers will proper student housing, and no couples buy these properties as Ebeyond age 40, but by 2050 Ireland’s over-60s is not provide whatever makes the retired persons’ accommodation. permanent homes, others divide one in three people in Europe will necessarily financial but a most money for them, or simply The UK has been providing for their time between Edinburgh be over 60. By then, one in 10 will pernicious combination of living what they know how to build this sort of suitability problem and places in the sun. be over 80 — nearly 500,000 in unsuitable accommodation and best. Often, these are one and for decades with specialised A house manager is normally people in Ireland. having no dedicated alternative the same. accommodation for the over-60s. on site for 25 hours a week, doing The ageing population will that might be more appropriate Irish housing development has The first thing to note is the odd-jobs, making sure the place is bring its own problems, caused in terms of size, running costs little creativity, which is why we over-60s are not “old”; they are maintained, taking in post and mainly by health, income and and location. have a plethora of three- and educated, cultured, mobile and generally ensuring a secure government support. Denmark Our housing system is poor at four-bedroom semi-detached increasingly wealthy. These presence. Service charges are spends about €5,000 a year on catering for niche markets. Being homes and little else. There is no specialised over-60s units are not £1,400-£1,800 a year and include social protection in old age; nursing homes in disguise but gardening, insurance and window Latvia, Romania and Croatia modern, sizeable, well- cleaning, and most over-60s spend €500. In Ireland, in 2011, appointed, well-maintained developments have a “careline” the figure was €2,000. LORCAN SIRR properties. system — essentially an Naturally, some of the The typical occupant of one of emergency pendant. It would be challenges of an ageing population these units tends to be a single common for different levels of will manifest themselves in ON THE woman aged 65 to 76. She will The typical occupant of a UK retirement home is a woman, aged 65 to 76 care to be available in different housing. usually have been a homeowner developments, depending on their In 2012 Ireland spent 7.3% of HOME FRONT who has found her house to be too target market. GDP on pensions, the lowest in large and too expensive to developers locate their me the selling price depended Although anybody can own the EU. As we know from this maintain. developments in areas of high on how much they had paid for these units, it is written into the column two weeks ago, the Irish In other words, she needs to homeownership. the land (which is different from title deeds that only over-60s can pension system is designed to pay downsize from the house she have Being a debt-free homeowner Ireland, where selling prices occupy them. for costs of living but not living lived in for most of her life(and we means they can sell their property have no relationship with This is an interesting niche costs (ie not rent or a mortgage). spend about 40 years in our last and afford a specialised over-60s construction costs). waiting to be filled in the Irish The name of the game, therefore, house) to somewhere more unit. Prices start at £140,000 In Edinburgh the units I saw housing system as the population is to be a homeowner and have suitable but in the same (€195,000) for a one-bedroom last week were 700 sq ft to ages. If only we could get builders the property fully paid for by location, which unit in Edinburgh. The specialised 750sqft for a one-bedroom home to drag themselves away from the retirement (men and women is crucial. Critically, the over-60s company I spoke to told (larger than Ireland’s standards by semi-detached.