For mortgage providers and later-life lenders, understanding the emotional reality of ageing homeowners in the UK is essential - not just for shaping product offerings, but for meeting the deeper human needs at play.
It’s a familiar, uncomfortable question: “Where, and how, will you live as you age?” For those still fit enough to manage their own homes, the urge is often to push these conversations away as it’s not an immediate issue or it’s not something they’re comfortable thinking about.
Yet, the consequences of avoidance are real. Decisions about moving or changing living arrangements are often made too late. By then, moving is harder, options are fewer, and decisions often fall to family members under pressure and emotional strain.
1 in 4 over 50’s are ‘not ready’ to think about where they’ll live in later-life
The data reflects this reluctance all too clearly. According to a recent survey conducted by Lenvi, three-quarters of UK homeowners over-50 have no plans to move:
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28% intend to stay until they need care,
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24% plan to remain permanently, and
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Another 24% are simply “not ready” to decide.
Only a small fraction (10%) have made the move to a home that better suits their needs already – most of these between ages 60 – 74.
Knowing how they’ll manage housing and living expenses in later-life is a clear area of concern for respondents. Among 50–54 year olds, 36% are very concerned and 43% identified as moderately concerned. The worry dips temporarily for those just entering retirement but rises again a few years later. Women in particular are more anxious, with 74% moderately to very concerned.
The reality is that, statistically, a large number of these people are living in homes that no longer fit their needs. They’re either too big, may become too costly to run, or too hard to maintain - yet they remain unwilling or unable to move. This is a deeply human story of attachment, but also one with major implications for housing availability and affordability across all generations.
UK Later-life lending market expected the grow to $8bn by 2035
The data paints a clear picture of older homeowners caught between financial worry and emotional attachment. With 36% of 50–54 year olds, and 74% of women aged 50-78 moderately to very concerned about managing housing and living expenses, a significant portion of this cohort is potentially searching for financial relief. This is indicative of an untapped market for responsible lending products that support later-life’s needs and challenges without forcing a move.
Given the sizeable proportion of older homeowners delaying downsizing and the clear rise in anxiety as homeowners age, these findings support broader market expectations for significant growth in the later-life lending market over the next decade. Annual volumes in the UK equity release market are expected to grow from $2bn in 2025 to $8bn by 2035.
A broader market perspective
At the same time, however, this opportunity brings complexity. The same staying put mentality that fuels demand for equity release and later-life products can deepen the housing market’s supply challenges. Larger homes remain occupied by those unable or unwilling to downsize, limiting availability for younger buyers and exacerbating affordability issues.
Therefore, while these products can solve individual financial challenges, they risk perpetuating the strain on the wider market where meeting the needs of one generation undermines the housing prospects of the next — forcing lenders, policymakers, and consumers into increasingly difficult trade-offs.
The Generation Gap report
Read our last report investigating the impact of an ageing population on UK homeownership
Easing moves without forcing them
Some lenders already provide ways to resolve this tension:
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Portable equity release and Retirement Interest-Only mortgages finance moves to smaller, more suitable homes without disrupting financial stability.
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Specialist advice partnerships to help older people navigate the emotional and practical barriers to moving.
However, financial education is an area where older homeowners often need more tailored support from their lenders. While conversations about improving financial literacy frequently focus on younger generations, our survey findings underscore that these needs are just as pressing for those in later life.
For example, Schroder’s 2020 Money and Mind report revealed that 43% of over55s were uncertain about how much income they would need to live on in retirement - a figure likely still relevant today. More recent data from their latest report shows that 62% of all respondents, regardless of age, expressed concern about their financial situation, with 41% claiming to be prioritising sorting out their finances.
This combination of clear need and demand highlights that as financial products and later-life lending become more sophisticated, ongoing education and advice on affordability will be essential. Further, as more consumers take it upon themselves to self-educate and become increasingly financially savvy, they will come to expect lenders to match this with deeper insight, clearer guidance, and more transparent support.
Therefore, the more lenders can do to embed financial education earlier in the customer journey the more future planning becomes a proactive choice, not a reluctant late-stage decision.
The balancing act
Later-life lending is about both the provision of appropriate financial products that respect older homeowners’ wishes balanced with housing market realities. Opportunity exists for lenders to support comfort and independence in later life - but there’s also a responsibility to avoid simply reinforcing the gridlock that keeps suitable housing out of reach for the next generation.
Can later-life lenders strike the right balance by helping older homeowners access the wealth in their homes, while also enabling the market mobility that benefits everyone?
For a deeper dive into the impact of the ageing population on UK homeownership and the implications for lenders, download The Generation Gap report.
