Almost half of homeowners who plan to sell their property in the next three years are doing so to downsize in a bid to reduce their bills.
Downsizing is the main reason to sell a home, accounting for 45% of homeowners who plan to sell their property in the next three years, according to new research from Lloyds Bank published today.
And more and more younger people are considering downsizing to free up cash and cut bills, with one in four aged between just 26 and 35.
Another quarter are aged between 36 and 45, which means half of all downsizers are still more than 20 years away from retirement.
The average homeowner raises £97,722 by downsizing, soaring to an average of £272,000 in London.
Some 43% of downsizers want a smaller property to cut bills and 37% see downsizing as a way to help support their retirement plans.
Other reasons for downsizing include raising money to invest and giving money to their family.
The results also showed that 45% of downsizers are looking to move to a bungalow, 32% to a detached house and 26% to a semi-detached house.
The potential amount of cash homeowners could raise by downsizing from a detached home to a semi-detached is £116,474 this year, up 13% in the last 10 years, an increase of £13,910.
Marc Page, mortgages director, Lloyds Bank, said downsizers have a key role to play in the housing market. "Many families view downsizing as a sensible way to lower their bills, help out their children or free up funds for retirement.
"However, selling your home is not a decision to be taken lightly. It’s important to give careful consideration to whether trading down is the best solution for you and to seek professional advice first.”
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