Almost half of all home movers say they plan to downsize when taking their next step on the property market over the next three years.
Many are looking to cash in on booming property values to fund retirement or cash in on their spare equity.
One in five are downsizing earlier than originally planned.
The new research, from Lloyds Bank, shows that trading down from a detached to semi-detached home can deliver £117,230 windfall
London downsizers could benefit from £200,000 boost.
Downsizing was cited as the single most popular factor for moving, as 46% plan to buy a smaller property for their next move.
The average age for a downsizer is 53.
Just over half say their main reason for downsizing is to suit somewhere more suitable for their circumstances, citing health, changes in relationship status and the need to be closer to better local amenities.
Others are looking to reduce bills, free up equity or provide extra cash for retirement.
Some 72% said they expected to profit from their move, with 35% saying they plan to reinvest their additional capital in a new property.
Mike Songer, mortgage director with Lloyds Bank, said: “We typically think of people moving to bigger houses as they move up the housing ladder, but people are increasingly looking to downsize because their circumstances or priorities have changed.
“Whilst financial gain may not be the main driver it is clearly a factor, with three quarters of downsizers expecting to profit from such a move.”
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