Bungalows Shortage Strains Downsizers as Builders Focus on Larger Homes

The UK housing market is facing a growing bottleneck for downsizers as the supply of bungalows and small, single-story homes diminishes. Builders have largely pursued larger three-, four- and five-bedroom developments, leaving fewer options that balance affordability with accessibility for older buyers. National House Building Council data show bungalows accounted for about 11% of new homes in 1990 but only around 1% last year, a level that has hovered below 2% since 2010. The mismatch helps explain why many households report difficulty finding properties that fit both their budget and their desired lifestyle.

Polls and surveys add to the picture. The HomeOwners Alliance says a quarter of would-be movers are held back by stamp duty concerns, and nearly a third by moving costs. Among those aged 55 and over, 34% cited a lack of suitable properties as their main obstacle to moving, making it the second-biggest reason after the upheaval of moving itself. The group estimates about 1.2 million people in that age bracket have abandoned moving plans, roughly one in seven. Yet demand for simpler, single-story living remains strong: 38% of 55+ homeowners say they would prefer a bungalow for their next move, making it the most popular choice in that cohort. Proponents argue that easing constraints on bungalows could unlock properties for buyers higher up the chain and help address affordability pressures in a tight market.

Lee Boyce, writing for This Is Money, describes his own search as being in the depths of house-hunting hell. He says many properties are “hot” on price but fail in size, while those in the right size range are unaffordable. He notes the shortage of smaller homes near his preferred area and says he has little interest in new builds, which he rejects for reasons including postage-stamp gardens and less desirable locations. His reflections mirror a broader concern among downsizers: even when a smaller home exists, it may be priced beyond reach, or located away from family and community.

On closer inspection, the notes illustrate a broader pattern in the market: even when bungalows exist, younger buyers are converting existing ones into two-storey homes to accommodate growing families, further shrinking the available stock for downsizers. In one street, a rough count of 50 bungalows found that five are being extended with a top box, and roughly half have already become two-storey. That dynamic compounds the challenge of finding affordable, properly sized homes that feel like part of a community rather than isolated pockets of retirees.

Campaigners argue the solution lies in design and planning that deliberately folds smaller, affordable homes into new-build estates. A concept favored by advocates is to fit three or four small homes—suitable for older residents—into the footprint of a single four-bedroom detached house, preserving community feel while expanding the supply of appropriate housing. Supporters say this approach could help accelerate progress toward the government’s target of 1.5 million new homes by 2030. They argue that “four new build homes” recorded in statistics for one larger unit would better reflect the real housing output when smaller, more suitable units are included.

The debate sits at the intersection of housing policy and market dynamics. The Bring Back The Bungalow campaign highlights that 1.2 million over-55s have abandoned moving plans and that 38% of homeowners in this age group would prefer a bungalow, underscoring demand for a type of home that could unlock mobility and free up larger, family-oriented housing. Government targets for 2030 add urgency to the discussion, but industry data show the bungalow share has collapsed from 11% of new homes in 1990 to about 1% last year, with the trend persisting since 2010. In that context, advocates say a coordinated push to revive single-story housing could ease demand bottlenecks, support aging in place, and help the market function more fluidly as buyers navigate stamp duty, moving costs, and the broader cost-of-living environment.

For buyers like Boyce and others caught in the cycle, the path forward remains uncertain. While the market headlines focus on price rises and mortgage costs, the nimbleness of supply—particularly of smaller, more attainable homes—will likely shape the pace at which households can move, downsize, or upsize as family needs evolve. In the meantime, the conversation continues around how best to align housing policy with a changing demographic landscape and a market that still aches for a steady stream of homes that fit real-life needs.