Home sellers who downsize in the same area could make up to £414,000, a consumer champion finds.
That’s if you moved from a four-bed to a two-bed property in London – the highest amount to pocket in the UK from such a move.
If you decided to head to the North East after selling up in London to a smaller property, based on average house prices, that figure skyrockets up to £771,097, according to Which?’s study.
That’s based on the average price of a four-bed in London selling for £904,778, compared to a two-bedroom home in the North East coming to £118,795.
The region proved to be a highly profitable place for downsizing. If you live in the area and move to a smaller property, you could expect to gain over half (56%) of the property’s value too.
Further, the region of South Tyneside is a popular destination to retire in, with the area scoring over seven marks out of 10 for healthcare and happiness in a survey of 1,100 homeowners.
South West and Northern Ireland popular for downsizing retirees
Elsewhere, homeowners looking to downsize in the South West could make up to £183,157 from doing so, based on the average four-bed property on the market being £447,606 and a two-bed £155,626.
This area is also popular among retirees, with Exeter scoring an average of eight out of 10 for healthcare provisions.
Meanwhile, in Scotland, there is a chance to recoup 50% of your property’s value from downsizing, with Northern Ireland residents potentially bagging £112,449 from the move.
Due to its healthcare (rated 10/10 by residents), Mid and East Antrim is also a popular place for post-working life.
A fifth of UK residents have considered leaving a bigger home for a smaller property this year, a separate study from Pepper Money found. This is largely down to hefty housing costs and rising food bills in the last two years.
‘Significant money’ to be made
Despite downsizing being “far from easy”, Sam Richardson, Which? deputy money editor, believes the potential to “unlock a significant amount of money” makes it a worthwhile exercise.
Richardson said: “Even after additional expenses, such as stamp duty and removal fees, the sums you free up could make a big difference, especially if you’re concerned that your pension won’t go far enough, or you’re looking to help loved ones financially.
“Added to that is a chance to experience a new community and part of the country, and find a home that suits you, with potentially less maintenance and upkeep required.”.
Downsizing in the UK
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