Why downsizing early could make you a mint - property experts reveal why selling up NOW may be best
Downsizing can be either the most distressing or liberating move of your life. Leave it too late and it can cause all sorts of heartache and sacrifice; but go early and you can reap plenty of benefits.
Downsize sooner and, not only can you free up funds for luxury cruises or family holidays (and those increased school fees), you can cut your bills and get the upheaval of moving out of the way while you’re on the front foot.
You can also cash in. Downsizers across England and Wales could unlock an average of £305,090 by moving from a four-bed to a two-bedroom home, according to analysis by Savills Research.
Based on a life expectancy of 20 years for those aged 65, the average downsizer can provide themselves a tax-free income of £1,218 a month for the rest of their life.
Despite these advantages, downsizing has fallen to its lowest level in a decade.
Over the past 12 months, 95,969 downsizers were active in the market: a 60 per cent drop from 153,795 in 2021-2022 and 48 per cent below the pre-pandemic average, according to Savills.
Downsizers made up a smaller proportion of the market too: 9.6 per cent in 2023-2024 from the 13.3 per cent high of 2018-19.
Downsize sooner and, not only can you free up funds for luxury cruises or family holidays (and those increased school fees). Pictured: Olivia and Andy Church who sold up to buy a villa in Spain
This may not be because the appetite for downsizing is diminishing, rather that the barriers to doing so are increasing.
This includes a lack of suitable homes to move to and the now-prohibitive stamp duty costs, according to Lucian Cook, head of residential research at Savills.
The fact that grown-up children are living with their parents for longer because of high property prices and rental costs is another obstacle, according to Simon Roberts of estate agent Strutt & Parker.
Mortgage rates are higher than five years ago, and from April first-time buyers face paying stamp duty on a home worth more than £300,000 rather than £425,000.
Nonetheless, a small but growing number of younger households are navigating these obstacles and choosing to downsize early.
Roberts says the tide has been turning since the pandemic as owners continue to rank lifestyle higher than assets.
‘People are prioritising holidays over living in a big house. Plus the spread of hybrid working means they have more flexibility of where to live and are reconsidering what convenience means.’
Estate agent Jackson-Stops reports that downsizer clients are up 23 per cent year on year – especially younger ones.
And analysis from another agent, Hamptons, shows a rising share of downsizer transactions, following higher mortgage rates and the rising cost of living.
Most downsizers pay cash and don’t take out a mortgage. If they downsize earlier they may still have a loan, so they have to remortgage on the new place. If more people are downsizing with a mortgage, it is likely to indicate that they are doing it earlier.
Claire Carter, of estate agents John D. Wood, points to another factor that is confirmed by Office for National Statistics data: divorce among the over-60s is on the up. ‘I’m seeing more people downsizing in their 60s and 70s because of separation,’ she says.
Here are four ‘young’ downsizers bucking the trend – though not due to divorce.
A lock-and-go flat for more Spain time
In two weeks’ time Olivia and Andrew Church will move from their four-bedroom house in the Surrey village of Ewhurst to a three-bed flat, 11 miles away in the centre of Guildford.
At 48, Olivia is an especially young downsizer, but with Andy a youthful 65-year-old, it is the right time to move ‘back into town’.
Olivia and Andrew Church will move from their four-bedroom house in the Surrey village of Ewhurst to a three-bed flat, while also being able to spend time in their villa in the Spanish sunshine
‘Andy’s two sons have moved out, and also my son Oscar,’ says Olivia, a former legal secretary who, like Andy, a retired stockbroker, is not working right now. ‘Living in a big house with many rooms being unused is a waste of money.
‘We didn’t want to leave it too late and be a burden on our kids.’
Olivia and Andrew plan to spend more time in their four-bedroom villa in Estepona on Spain’s Costa del Sol once they have downsized.
‘Now instead we will all get together in the Spanish sunshine,’ says Olivia.
Their new lateral apartment is within gated Langton Priory – so the perfect lock-and-go property for long stays in Spain. It cost £925,000 through Strutt & Parker.
‘Living close to the station will be ideal for taking the train up to London to see the children,’ she adds. ‘I like being able to walk to cafes and shops, and Andy’s ex-wife is around the corner so it’s perfect. Life is short, so we decided to be proactive and do it sooner rather than later.’
Living mortgage-free with a nest-egg
At 53, psychiatrist Matt Angell is a very young downsizer.
But like the Churches, he is also planning ahead by moving from his three-bedroom house in Mill Hill, in leafy north London, to a two-bedroom 15th-floor flat in Wembley Park in north-west London.
At 53, psychiatrist Matt Angell is planning to move from his three-bedroom house in Mill Hill, in leafy north London, to a two-bedroom 15th-floor flat in Wembley Park in north-west London
At Regal London properties’ Fulton & Fifth development, two minutes from Wembley Stadium and the transport links of Wembley Park there are 800 new flats. Two-beds are from £595,000 and there’s an onsite cinema room, gym, pool and golf simulator.
Matt’s move is inspired by a shift in his work life and the need to release capital, plus he was also fed up with paying for a house with rooms he didn’t use.
‘I wanted to be mortgage-free and have money for a retirement nest egg,’ he says.
‘Wembley Park is more affordable than my old area.
‘I am also setting up my own company – Expert Therapists – and will use office space in the development which will be separate from my home.
‘Further down the line, I hope to wind down my work a bit, and spend more time in Italy, where my girlfriend is from so the flat could be let out.
‘Making the move now, paring down my stuff, means that I won’t have to deal with the upheaval in 15 years. Will I miss the space? No – I don’t particularly want house guests!’
Lower bills and my own space
For service coordinator Sharon Patterson, 61, downsizing has meant finally getting a home that is hers alone. But it has also freed up funds for her to use.
After living for 30 years in a three-bedroom house in Hemel Hempstead, Hertfordshire, with her mother, son and brother, she sold it in 2023.
For service coordinator Sharon Patterson, 61, downsizing has meant finally getting a home that is hers alone
‘My dad helped me buy my house – it was a very sociable place for everyone to meet so it was a hard decision to finally sell and live on my own. But I also felt stressed all the time and just needed my own space,’ says Sharon.
‘I nursed my dad through Alzheimer’s and after he died I felt it was the right time to downsize.’
Sharon bought a two-bedroom flat for £248,500 at Barratt Homes’ Kingsbrook development in Aylesbury, Buckinghamshire and found her mother a flat nearby. ‘I have now halved my bills to £50 a month, my council tax is much lower and my mortgage is £560 a month rather than £1,000.’
Her ground-floor flat will also be ideal if her arthritic knee worsens. ‘Living alone has been a big change, but now I can have things how I want them. Your 60s are the new 40s, and I didn’t want to see life just float by.’
Wooed by a smart bungalow
It’s the perfect time to downsize when the children have left home, but sometimes an incentive is needed to make it happen.
Garry and Sam Sibson, both 54, have three children between them and are empty nesters. They had the typical midlife dilemma of ‘what next?’ and how to move on from their four-bedroom house in Rearsby, Leicestershire.
Garry and Sam Sibson, both 54, have three children between them and are empty nesters
‘We were rattling around with so much space, even the dogs had an ensuite,’ says Sam, an insurance clerk. ‘We are still quite young and thought about buying a doer-upper but renovation is too expensive these days, and we are too young for a retirement scheme,’ says Garry, a council worker.
It was when Sam spotted Lavender Mews, a small, swanky new bungalow development in nearby Syston with prices from £425,000, that their downsizing plan began.
‘We just loved the look of the dormer bungalows, designed to be energy-efficient and high-spec,’ says Garry.
‘Upstairs there’s a big master suite with Sam’s dream dressing room, and downstairs two more bedrooms and bathroom so my parents, in their 80s, can come and stay without using stairs.
‘As it costs £15,000-£20,000 to move house we knew we didn’t want to have to do it again in years to come and the downstairs bedrooms may be useful for us too in time. It will be cheaper to run, frees up a bit of money and is very low maintenance.
‘We move in March when it’s finished and think that as the “last roll of the dice” home it’s pretty nice, with all the extras like the eco-friendly heat pump, dressing room and the top-notch new kitchen appliances we wanted.’
