A lack of suitable housing stock and high prices are stopping the equivalent of 1.4m last-time buyers from downsizing.

Research by equity release provider Key Retirement found that 30% of over-65s are planning a final home move.

However, 44%  of those looking to move said there was no suitable housing stock availability, while another 35% said they would not be better off financially.

This equated to 620,000 and 500,000 over-65s respectively.

Demand was at its highest in the north-east and south-west, with 58% and 44% looking to downsize.

This has left 42% worried about keeping up with bills and 17% living in a house they say is too big for their needs.

Dean Mirfin, chief product officer at Key Retirement, said: “Downsizing should make financial sense for older home owners as it releases money to pay for retirement, and it also should make sense for the property market as a whole as it frees up bigger houses.

“But despite the numbers of older home owners wanting to downsize it is clear they face problems in finding suitable homes for retirement, and for many the finances just don’t add up. Unfortunately, that leaves them struggling to maintain homes, and in many cases, struggling financially.”