The Inside Edge
A recent survey has revealed that downsizing has become the prime reason for moving house within the UK with one if five people moving to a smaller home sooner than they expected. The findings come from Lloyds TSB who claim that more and more homeowners are moving to cheaper houses, either for relocation purposes or simply to save money.
Within the survey, Lloyds TSB found that around one third of those taking part said that they were downsizing to save money on household expenses while 59 per cent stated that they were looking for dwellings that better suited their needs.
Traditionally, those property owners reaching retirement age have been the main demographic in any downsizing statistics but Steven Noakes of Lloyds TSB said that the findings were continuing to include people from all life stages.
“Downsizers are now playing a key role in the housing market and as the study shows we are starting to see homeowners on different stages of the property ladder considering it as a sensible option as more and more families are looking at ways to save money,” Mr Noakes said.
Many are still option to downsize in order to claim a cash windfall and this is another area where market factors have led to more homeowners selling up and moving to smaller properties. Those planning to trade down have seen the average amount of their cash windfall rise by forty per cent over the course of the last ten years. It’s claimed that trading from a detached home down to a small bungalow in 2012 will earn an average of £97,298 – an increase of £28,484 from 2002.
“While we have seen a significant rise in the potential cash windfall, downsizing can make a lot of sense for a wide range of people, it is important to consider carefully whether trading down is the best solution,” Added Steven Noakes.
“Whether you are looking to lower utility bills, pay for an offspring’s tuition fees, or free up extra cash for retirement we recommend you seek professional advice before taking action.”
For anyone thinking of downsizing, they are urged to weigh up all the advantages and disadvantages and there are more than just financial issues to consider. On the plus side there are factors such as less work and maintenance but some homeowners regret their decision purely because they miss the comfort factor that a larger property can bring.
For whatever reason, downsizing is on the up but will it make any significant boost to the property market over the next few months and years?