A new study has found that one-third of those selling up and moving to a new home are downsizing. For the majority, the reason behind the move is an empty nest.
Park home buying company Quickmove Properties surveyed nearly 7,000 UK home sellers who had sold within the previous year, asking them whether the size of their property had changed.
Half of those questioned had moved to a larger home, while 17% moved to a property of a similar size. One-third (33%) had moved to a smaller home.
Those who moved to a bigger property had an average age of 39, while the average age of those downsizing was 60.
Most of the downsizers chose a property with one or two fewer bedrooms.
The most common reason for downsizing was because of an empty nest. Other reasons were reducing or paying off the mortgage, retirement, a reduction in mobility or wanting a home that was easier to maintain.
Of those surveyed, 19% said that they wished they had moved earlier than they did.
Financial benefits of downsizing
Of those who had downsized, 40% said that their mortgage payments had gone down by 50% or more.
Some 21% said that they had cut their household outgoings by 20%.
Substantial capital was released from property by those downsizing, with equity of up to £150,000 taken out of homes.
Sales Director at Quickmove Properties, Mark O’Dwyer,said:
“In current market conditions, downsizing and releasing equity can provide you with the financial security to ensure that your bills are paid and any increase in the cost of your mortgage is more easily managed.
“However, financial stability isn’t the primary factor behind our decision to downsize and, in fact, the vast majority do so due to lifestyle factors such as an empty nest, retirement and for age or health reasons.
“This is very much the case when it comes to downsizing – or ‘rightsizing’ – to modern park home developments, where like-minded people enjoy detached, bungalow-style living in easily maintained luxury homes. Many park home buyers find these safe, welcoming and ready-made communities hugely appealing, after living in a larger empty home for some time. No wonder so many wish they had made the move earlier.”
Reasons to downsize
Easier maintenance – owning a smaller home will usually mean that home maintenance is reduced and that it is easier to keep on top of what needs doing.
Lower outgoings – as well as lower maintenance costs, you can also expect lower insurance, lower Council Tax and lower utility bills. If you move to a cheaper home but still have a mortgage, you could reduce your payments or alternatively reduce the length of your mortgage, saving interest over the long-term.
Improved quality of life – with a property that is cheaper and easier to maintain, you will have more time and money to enjoy life. You could also choose to move to your dream area, for example, a move to the country or the coast.
New area – you could relocate to an area that offers more of the amenities that you want. This might be particularly important if you are thinking of spending your retirement there. You might want more local facilities, such as healthcare, buses and cafés.
Reduce your possessions – it can be very positive to declutter and reduce the number of possessions you have. A move to a smaller home will give you the opportunity to go through everything you own and decide what you really want to keep and what you are happy to sell or pass on to someone else. Having fewer possessions also means less time spent keeping them clean and organised.
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