Across the UK, different generations face different situations in the housing market. Government policy in the next parliament will face the challenge of finding suitable homes for the baby boomer generation, while helping a generation of boomerang kids get on the property ladder.

As a result, many more people are making the decision to move back in – or stay living – with their parents as adults, often referred to as 'boomerang kids'. This may be while they begin saving for a deposit. According to the Office for National Statistics (ONS), the number of 20 to 34-year-olds living with their parents increased by 669,000 (25%) between 1996 and 2013.5

This has become a key political issue across all the main UK parties, with a range of recent policies aiming to combat this trend; by the end of July 2014, almost 40,000 first-time buyers had bought homes through Help-to-Buy policies.6

As the dust settles on the 7 May general election, it remains to be seen what changes could be seen to policy in this area. In the meantime, however, the current environment of low mortgage rates means that there are bargains to be had whether you're a first time buyer or looking to remortgage your home.7

Space seekers
For current homeowners, housing market pressure may be leading more people to improve or extend their existing home, rather than move. Rising house prices may make moving too expensive, but at the same time mortgage borrowing has become more affordable. In the year to February alone, UK house prices increased by 7.2%8, while mortgage interest rates have been very competitive.9

One survey showed that 94% of UK homeowners would rather spend money improving their current home than sell and move in 2015.10 For an expanding family household, or those just looking for more space, improving rather than moving could provide the extra rooms or floor space needed, while for others moving may be a better option.

For those who would consider moving now or in the future, they would have to assess the current situation surrounding supply and affordability of housing across the UK. According to a report cited by a cross-party group of MPs at the end of 2014, there were some 8 million people over 60 interested in 'downsizing'.11

If half of these people did sell their homes, it would mean around 2 million family homes (with three or more bedrooms) becoming available on the housing market12, which could, in turn, shakeup housing supply and demand dynamics, having a potentially positive knock-on effect on property prices for those looking for a home with the extra space they require.

The downsizers
The relatively large numbers of people born after the Second World War and during the 1960s, known as the baby boomer generation, have retired or are reaching retirement age.13 This generation own a significant share of the properties in the UK and, at the same time, many are expected to live ever-longer lives.14

This combination of factors is likely to be driving greater consideration of 'downsizing'. Moving home, as you grow older, often means a move from a bigger to a smaller property, or to a property with fewer bedrooms.

There are many reasons why this is an increasingly popular idea. Not only are there cost saving benefits, but it is also a way to release capital tied up in a property, which may be increasingly important if more years are to be spent in retirement.

However, a bigger question may be whether the market is setup to provide attractive, and in some cases affordable, options for older people looking to move. In the run-up to the general election, the Council of Mortgage Lenders (CML) urged the new government to "consider ways of encouraging older households to downsize, promoting more efficient use of the existing housing stock".15

If demand from people approaching retirement does increase, the market for suitable and attractive homes could also grow. This could make downsizing a more viable and appealing idea, as long as the lifestyle and financial benefits add up, with a knock on impact for the generations below.

Your home may be repossessed if you do not keep up repayments on your mortgage.