Research by Quickmove Properties has shown that silver homebuyers looking to downsize can maximise the equity accumulated in their existing property to the tune of £127,738, by opting for a brand new park home at an average asking price of £182,420.
Quickmove Properties analysed current market data on the average asking price of a new park home, how this compares to the bricks and mortar market, as well as how the two differ when it comes to size and running costs, revealing how those looking to downsize can maximise the value in their existing bricks and mortar property during retirement.
Purchase price of a new park home
The research shows that the current average asking price for a new park home across England is £182,420. With the average bricks and mortar home commanding £310,159 in the current market, this means those opting to downsize to a new park home can maximise the equity accumulated in their existing home to the tune of £127,738.
The North West is home to the most affordable new park home price tag overall at an average of £130,485, while the South East ranks top with the highest new park home price tag at an average of £244,660.
Despite being home to the highest average price for a park home, the South East also offers downsizers the largest potential to maximise the equity they’ve built in their existing home. With the average bricks and mortar property in the region valued at £398,368 in the current market, those downsizing to a new park home (£244,660) would be left with £153,707 to add to their retirement fund.
What’s more, there’s no stamp duty payable on a new park home, which makes the initial cost of securing one even more affordable than a bricks and mortar purchase – £3,008 less on average.
More affordable running costs
But park homes don’t just offer the opportunity to release a 6-figure sum of equity, the ongoing costs can also be considerably cheaper.
Estimated at £1,750, the annual energy bill of a park home can be 43% cheaper than that of a conventional house due to the modern construction methods, insulation materials and a cosy size that requires less energy to heat.
In terms of council tax, the typical band for a park home is A or B, versus D for the typical bricks and mortar home. It means the annual council tax bill for a new park home can be 50% more affordable than a traditional house.
Little compromise on size
The modern day park home also provides value for money in terms of the living space on offer. With the most popular park home coming in at a size of 800 sq ft, it’s only marginally smaller than the 1,033 sq ft of the average bricks and mortar house.
When considering price and size, park homes come in at an average of £168 per sq ft, versus £300 per sq ft for the average bricks and mortar home. A park home also provides the additional outdoor space of a garden area or decking, with a minimum three metre apron in place in between each park home meaning there’s plenty of room for garden sheds, outhouses and man caves.
Sales Director at Quickmove Properties, Mark O’Dwyer, commented:
“The park homes sector is fast becoming the option of choice for many home sellers looking to downsize and utilise the equity they’ve accumulated within their home to enjoy their golden years.
Not only can the average park home buyer benefit to the tune of almost £128,000 in released equity when downsizing, but there’s no stamp duty payable and annual ongoing costs can also be substantially lower when compared to a bricks and mortar property.
This provides those making the move from the bricks and mortar market with a considerable financial cushion without compromising on their quality of life, with new park homes delivering all of the modern comforts, amenities and features that you would expect from any new-build home, and then some.
Park home affordability is also helping many over 50’s to overcome the current high cost of living and in an increasingly difficult bricks and mortar market, a new park home purchase also provides a swift and stress free move into their new home.
But perhaps the biggest selling point is the ready-made community that buyers find when they arrive on park, which provides an additional layer of appeal. While the average size of a park home may come in slightly below that of a regular home, it certainly doesn’t seem the case once you’ve immersed yourself within a friendly community of like-minded people on your doorstep.”