Banks: Bridging Finance

Debate between Lord Taylor of Goss Moor and Lord Newby

Monday 20th October 2014 Lords Chamber

[Lord Newby]

My Lords, that is obviously the case for many people who have been in the same house for a long time. Some people entering retirement who still have a mortgage may require a mortgage if they are moving to a smaller property, but it is almost by definition going to be a smaller mortgage than the one they previously took out, given that there will have been some capital appreciation. One of the key challenges for us is that research shows that almost half of all over-55 households have spare space in the house. If we can facilitate downsizing where people genuinely want to do it, society as the whole will benefit.

[Lord Taylor of Goss Moor (LD)]

Will my noble friend agree that older empty-nesters often wish to have their grandchildren or other visitors come to stay with them? There is a myth that when people downsize—which does free up housing for families—they somehow want to go into specialist, tiny homes for people with great needs at the end of their lives. That is not actually the key to unlocking family homes: the key is to provide something for people to move into that is appropriate to their needs and expectations. The problem is the fundamental shortage of housing of that sort.

[Lord Newby]

My Lords, yes, I completely agree. It is important that those housing associations that provide specialist housing designed for older people—one of which is chaired by my noble friend Lord Stoneham—are encouraged to grow so that we can have more appropriately designed and sized accommodation.