According to a study carried out by Lloyds Bank among homeowners, nearly 50% of those seeking to sell their house in the next three years are looking to downsize, with 43% of these people saying they will do so to ensure lower bills.
The results also established that more than a third of home sellers believe downsizing will help them achieve a better standard of living in retirement. Some 29% of those polled said they will be downsizing earlier than expected.
Downsizing, which generally involves selling your existing house and using the money from the transaction to buy a cheaper property, is now becoming the primary factor that makes people sell their homes. This is explained with homeowners’ willingness to move to a smaller house that will incur cheaper bills and ensure a rise in their income.
Another 31% of potential downsizers said this would help them free up equity which can be then re-invested in something other than a pension or property. Some 12%, in turn, said they wanted to invest the equity in a pension and 18% stated they would be happy to give money to their family.
When asked about the type of property they would prefer to move to after downsizing, 42% cited plans to buy a bungalow, 32% said they would move to a detached house and 26% pointed to a semi-detached house as their top choice.
The study further established that the average age at which people seek to downsize is 40.
The average homeowner now receives £97,722 from downsizing against £87,501 around ten years ago, with the sum surging to £272,000 in Greater London.
Do you plan on downsizing? If so, what kind of property do you have your eye on?