51% of potential homemovers are looking to ‘downsize’ within the next three years, compared to 22% looking to trade up to a larger property, according to the latest research from Lloyds TSB.
While 59% want to move to a smaller property that is better suited to their circumstances, 33% of potential downsizers would like to move to a smaller property to help reduce bills.
37% would like to free up equity in the property and 30% said they want to downsize to help support retirement plans.
21% of those considering downsizing are looking to trade down earlier than expected, with the majority citing financial concerns as the key driver. Comments from those surveyed included:
Although Lloyds TSB found that older homeowners are still playing a key role in the downsizing market, the research highlights that homeowners of different ages are now considering it as an option. 63% of potential downsizers are over-55s but 28% are aged between 46 and 55 and over 5% are aged between 36 and 45.
49% of homeowners living in their second home are considering trading down, as well as 61% of homeowners in their third home and the same number 61% in their fourth home.
Lloyds TSB also found that 68% of homeowners considering downsizing have lived in their current property for over a decade. However, 20% have lived in their property for between six and 10 years and 12% have lived in their property for only five years or fewer.
“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,” said Stephen Noakes, mortgage director at Lloyds TSB.
“Whilst we have seen a significant rise in the potential cash windfall, downsizing can make a lot of sense for a wide range of people.”