Alongside affordable housing projects, lenders and housebuilders should focus on the construction of smaller luxury properties, the Family Building Society has said.
Speaking at the Mortgage Business Expo 2016, Keith Barber (pictured), director of business development at the building society called on the industry to provide more smaller luxury homes.
As the UK population continues to get older, an increasing number of people look to downsize. The construction of smaller luxury homes could encourage older generations to move, freeing up more affordable properties for younger generations struggling to get on the housing ladder.
Barber said:”If the government could reduce the cost of downsizing, then new, smaller luxury properties might offer a way of freeing up properties at the lower end of the market.
“Britain is facing an increasing range of demographic challenges, and the market must respond to this.”