As reported by Lloyds Bank, new data suggested that almost half of those individuals looking to relocate home within the upcoming three years are actually planning to downsize. In fact, beyond being a coincidental factor, downsizing has actually been dubbed the most popular reason for people to choose to move house as of present.
Encouraged by the anticipated returns of moving to a smaller property, there has been a considerable surge in interest for such moves over the past few years. This, primarily can be attributed to the average windfall which individuals may be in receipt of should they relocate from a detached to semi-detached home.
The average age cited for those looking to downsize sits at around the age of 53, where many of the homeowners had previously lived in their property for an extended period of 11-20 years. Of course, with people around this age beginning to consider their future and plans for upcoming retirement in many cases, relocation to a smaller, more cost-efficient property serves as one way for them to prepare as such.
Moving to better suit changing circumstances was reported to be the number one reason for moving, followed by a want to reduce bills, free up equity and, as aforementioned, provide extra funds for retirement. This, of course, is further enhanced when considering the traditionally lower costs of heating and powering a smaller property in contrast to a larger, more spacious one.
Of those downsizing, some 20% of people stated that they are moving far earlier than they had originally planned, with key reasons such as health, changing relationship status and the provision of amenities in certain geographic areas being key factors of concern. Additionally, geographic affordability also contributed, especially when taking into account the concept of requirement, where relative location for employment opportunities is no longer of prime concern.
With almost three quarters of people expecting to make a profit from downsizing, the question begs as to whether property downsizing in the later stages of life will now become the norm for those looking to prepare for retirement, or invest in key financial products – a popular product naturally proving to be pensions.