Homeowners raise an average of £121,686 by downsizing from a detached to a semi-detached home, new research shows.
London is the most lucrative place to downsize, with the average amount raised hitting £263,770.
Moving from a detached home to a bungalow is the most popular option, with those moving from a detached house releasing an average £103,715.
Downsizing continues to be the main reason to sell a home, with 52% of home movers planning to move in the next three years considering a smaller property, according to the latest Downsizers Report from Lloyds Bank.
Downsizing is nearly 10% more profitable than it was 10 years ago in 2004.
Three out of four homeowners expect to make money when they downsize.
Of those, 43% will reinvest this money in a new property and 26% will invest in other financial products.
One in four are planning to move to a more affordable area, 5% less than in 2013.
Almost two-thirds said they were downsizing to find a smaller property that suits their current circumstances better.
But 40% said they were looking to reduce bills and outgoings, while a quarter are either releasing equity from their property or looking to boost their retirement funds.
The average downsizer is 56 years old, with the greatest proportion having lived in their current property between 11 and 20 years, after moving in at the age of 39.
Andy Hulme, mortgages director at Lloyds Bank, said: "Downsizing is clearly still a major part of the housing market with over half of potential homemovers considering a smaller property.
"The volume of downsizers is therefore helping to keep the market moving, freeing up larger properties for those making their way up the ladder."
Downsizing has many benefits, including generating a large cash sum, cutting household bills and freeing up funds for retirement, Hulme said.
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