Whether you’re looking at properties for sale in SE17 or flats for sale in Bristol, chances are you’ll be downsizing. According to new research produced by Lloyds TSB at any rate! The high street bank found that just over half of us are intending to go for a smaller property when we do decide to move.
Lloyds also found that 21% of survey respondents are going to be downsizing earlier than they originally expected; within the next three years.
If you’re wondering which regions recorded the biggest windfalls, prepare to be surprised. Those with properties for sale in SE17 and other desirable areas of London are in luck. Unsurprisingly, Londoners received the highest windfall - £269,415 – as a result of downsizing.
Surprisingly, it wasn’t the South East which came second on the list of biggest average windfalls. Yorkshire and the Humber actually recorded the highest increase in average windfall over the past decade, at 84%. So that’s good news for those with properties for sale in York and homes for sale in Harrogate.
The South West was close behind, with an increase of 71% over the last decade. Good news for those with properties for sale in Bristol and other desirable towns and cities within the region.
Traditionally, transferring to a smaller property occurred when children left the family home. Faced with a large and empty nest, parents often decide to downsize to something more manageable and affordable.
Today, it’s a slightly different story and there’s a growing trend for downsizing amongst younger people. Whilst 63% of potential downsizers are over 55, Lloyds also discovered that more homeowners of different ages are also considering trading down. Some 28% are aged between 46 and 55, and over 5% are aged between 36 and 45.
On average, retirees have netted £100,000 by downsizing, a figure which increased by 40% over the past decade. According to figures from Lloyds, trading down from a detached home to a bungalow would have earned an average windfall of £97,298 in 2012. In 2002, the same trade would have made the owner £68,814.
Steven Noakes, mortgage director at Lloyds TSB, said: “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.
“Whilst we have seen a significant rise in the potential cash windfall, downsizing can make alot of sense for a wide range of people, it is important to consider 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.”
Search My Homes Unlimited for a wide range of properties for sale in SE17 and flats for sale in Bristol.
Source: Lloyds TSB.