Many Brits who are looking to sell their home will do so in order to free up cash tied up in large properties, express.co.uk reports.

According to new research by Lloyds bank, almost half of those who plan to sell their house within the next three years will be downsizing, as they look to smaller properties in order to take a lump sum from their current equity.

Lloyds also found that downsizing could be a hugely lucrative business, with the average homeowner expecting to take a £97,722 lump sum from buying a smaller property. In London, meanwhile, the figure soars to £272,000.

It was also discovered that this trend wasn't just the reserve of older retirees. Instead, the average downsizer is now 40 years of age. Not only that, roughly a quarter of all downsizers are aged between 26 and 35.

The reasons for doing so have remained relatively unchanged, however, as homeowners look to get a lump sum that will fund retirement or cut domestic bills. Others, meanwhile, may wish to do so as they divide their time between two properties - one at home and one abroad.  

Potential downsizers have been advised to exercise caution, however, as the process of buying and selling could eat into their investment pot.  

Commenting on the results, mortgages director at Lloyds bank, Marc Page, told independent.co.uk: "There is no question that downsizers have a key role to play in the housing market, especially in a climate where it's not just those looking to retire who want to free up equity from their home by moving somewhere smaller.

"Many families view downsizing as a sensible way to lower their bills, help out their children or free up funds for retirement."



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Author

  1. avatar
    David Howells