With the demographic time bomb approaching, the numbers of retirees that are swelling the population mix means some three million are relying on downsizing their home to fund a pension according to Royal London a pension firm.

As more and more of the grey grow old disgracefully with greater choice to spend their money on (50% of Harley Davidson sales are to the over 50’s) and with longevity of life to look forward to there is a fundamental flaw to the plan, which I call “downside delusion.”

Younger people in theory are the buyers of this property but in reality this won’t happen, they are being stymied by rising house prices (even a 10% predicted fall will not change affordability) and high rents, which make saving difficult.

Lending criteria has also tightened since the 2008 financial crisis, with higher deposits and greater clarity of job security required.

Add in record personal debt levels, University loans and similar and it’s a long struggle regardless of parental help or the “help to buy” Governments electorate sweetener.

We have a housing crisis that goes back twenty years as demand has far exceeded supply and we have consistently built less than half the required housing. Government interference has made things worse and Margaret Thatcher’s “right to buy” at absurdly deep discounts was singly the biggest error of housing policy of the last century. There is a chronic shortage of social housing that will never catch up now with demand yet again racing ahead of housing starts.

A sustained programme of house building to cut the housing deficit is what is required and fast and at Go Develop we embrace and support developers with great schemes but where they lack the normal finance that other lenders ask for.

So our 100% full funding is a game changer as it means that our developer partners are able to get on with what they do best and use our substantial funds to make them more.