The main reason for moving house? Downsizing
Age becoming less relevant factor as one in five now downsizing earlier than expected to raise windfall money and help with household bills
Thursday 11 October 2012
According to the new report from Lloyds TSB, 59 per cent of people want to move to a smaller property better suited to their circumstances, a third to reduce bills, and almost one in three to support retirement plans.
A fifth of those considering downsizing are looking to trade down earlier than expected, with the majority citing financial concerns as the key reason.
Older homeowners still play a key role in the downsizing market, but the research reveals that homeowners of different ages are now considering it as an option. So while 63 per cent of potential downsizers are over 55, more than a quarter are aged between 46 and 55, and over five per cent are between 36 and 45.
Homeowners at different stages of the property ladder are also looking to downsize to a smaller property in the next three years. Almost half of homeowners living in their second home are considering trading down, as well as 61 per cent of homeowners in their third home and the same number in their fourth home.
Over two thirds of homeowners considering downsizing have lived in their current property for over 10 years. However, one in five have lived in their property for between six and 10 years and over one in ten for only five years or fewer.
“Downsizers are now playing a key role in the housing market," said Stephen Noakes, Mortgage Director, Lloyds TSB, "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.
“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. 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.”
Those looking to trade down later in life have seen their potential cash windfall rise by more than 40 per cent over the past decade.
Trading down from a detached home to a bungalow would have earned an average windfall of £97,298 in 2012, an increase of 41 per cent (£28,484) since 2002.
Regionally, Yorkshire and Humberside (84 per cent) saw the biggest increase in the average windfall, followed by the South West (71 per cent). In monetary terms, Londoners typically receive the highest windfall (£269,415) from trading down.
The windfall associated with downsizing from a detached property to a semi-detached property has risen by 46 per cent over the past decade. A downsizer today would receive an average windfall of £120,359compared with £82,412 in 2002.
* 45 per cent of potential downsizers currently live in a detached house
* Almost half of downsizers plan to move to a bungalow.
* Half of potential downsizers believe a third stepper will buy their home
* Three quarters of potential downsizers expect to make a profit when they sell their property.
* 36 per cent plan to invest that money into a new property, over one in ten plan to pass it down to their family and a similar number plan to top up their pension
A three-bedroom Grade II-listed mews house with vaulted ceilings and roof garden
A spacious Grade II-listed family home with annexe and equestrian facilities among four acres of land in Itchingfield
A four-bedroom home with exposed brick walls and open fires in the picturesque village of Northill
A Grade II-listed property with five bedrooms and unique tower, overlooking Hastings Old Town
A charming five-bedroom detached family home, set within half an acre in Kew
A two-bedroom maisonette set on the top two floors of a period building, close to Kentish Town Tube.
Take advantage of the extra space provided by former stables and outbuildings at this five-bedroom farmhouse.
This three-bedroom Victorian terrace is near to Queen’s Road Peckham station, Nunhead station.
A five-bedroom modern house with terrace, swimming pool, Zen treehouse and large carp pond
An unexpected gem with four bedrooms, remarkable vaulted reception and a galleried study area
A five-bedroom house in one of Lymington's most sought after tree lined avenues, moments from the marinas and sailing clubs
A grand early 19th century B&B close to the historic harbour, with four en suite bedrooms
A four-bedroom, 17th century home with walled gardens, a landscaped terrace, cellar and open fires
A six-bedroom house with five bathrooms and four reception rooms spread over 4,000sq ft of luxury living space
A stunning three double-bedroom apartment with two decked terraces in the exclusive gated community, Bromyard House
A 10-bedroom period, family home amid beautiful surroundings in the centre of the Wentworth Estate in Longcross village
A stylish three-bedroom apartment with two bathrooms and private landscaped garden, moments from Fitzroy Square
A Grade II-listed Elizabethan barn with landscaped gardens, exposed elm beams and four bedrooms, all with lovely views
A six-bedroom family home, dating back to 1280 with four reception rooms, barn, swimming pool and tennis courts in Harwell
A spacious two-bedroom flat, refurbished to a very high standard with private landscaped garden, close to Kentish Town station
An exceptional two-bedroom apartment with balcony and underground parking in the centre of Richmond
A one-bedroom, luxury, duplex apartment in the grand landmark building, Imperial Hall
Run a fabulous boutique shop, live above it in a one-bedroom flat and let a second one-bedroom flat that comes part and parcel
A Grade-II listed, thatched cottage in Hundleby village, with five bedrooms, a coach house and three and a half acres
A spacious two-bedroom flat in the heart of Hoxton Square with wooden floors and roof terrace
A five-bedroom family home with stunning pool and gym complex set among two acres of land
A six-bedroom period house with heated swimming pool and a separate two-bedroom annexe cottage in Townlake, £795,000
A spacious and contemporary two-bedroom flat arranged over three floors, with garden patio close to St George Square, £600,000
A one-bedroom flat in a beautiful Regency building opposite the beach in Kemp Town, £190,000
A two-bedroom flat with London skyline views close to Surrey Quays. £395,000.
A seven-storey tower with three bedrooms and a stunning roof terrace. Guide price: £850,000.
A 16-bedroom country pile with nine reception rooms, four self-contained flats and a 13th century Peel Tower. £850,000.
A classic six-bedroom Victorian Manse house 10 miles from Edinburgh. £495,000.
John Lennon's childhood home in Liverpool to be sold at auction. Guide price: £150,000-£250,000.
A six-bedroom detached period property with secluded gardens, ample parking and a double garage in Rye, £675,000.
A large split-level property with three double-bedrooms and roof terrace, close to Crouch End Broadway, £625,000.
A charming barn conversion in the picturesque Cotswold village of Ilmington with three bedrooms, a detached garage, workshop and beautifully manicured gardens £675,000.
A three-bedroom new build, ground-floor flat with two bathrooms, close to Bermondsey tube, £445,000.
A three-bedroom house in an enviable new development moments from Oxshott High Street, with secluded garden and decked area, £385,000
A two-bedroom split-level flat with stunning south-west facing roof terrace in the popular Brondesbury Conservation Area, £549,950.
A charming 16th century, three-bedroom detached house in Bidborough with picturesque garden
A top-floor one-bedroom flat in the heart of Pimlico with a terrace providing spectacular views over London, £495,000.
A six-bedroom house, with three reception rooms, 1.5 acres of land and stables, £450,000.
A three-bedroom terraced house in the heart of Clapham Old Town with private west-facing roof terrace, £895,000.
tvParents (and kids) rejoice! A new wave of fantastic family entertainment is here
food + drinkHow one grocery e-tailer is gearing up for the Yuletide rush
food + drink
Life & Style blogs
- 1 Hundreds arrested as Canadian police smash worldwide paedophile ring
- 2 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 Mass murder in the Middle East is funded by our friends the Saudis
- 5 Japan cracks down on leaks after scandal of Fukushima nuclear power plant
£80000 - £100000 per annum + Benefits + Bonus: Harrington Starr: Senior C++ De...
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...
£23999 - £32001 per annum + Benefits: Pro-Recruitment Group: An independent ac...