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Financial Pressures Drive British Homeowners to Consider Downsizing
A new study by Halifax has found that three out of ten British homeowners have considered downsizing their home due to financial pressures. The study, which was conducted in November 2022, found that the rising cost of living was the biggest factor driving homeowners to consider downsizing.
The study found that the average homeowner could save £120,820 by moving to a home one bedroom smaller. This is due to the fact that the price per bedroom decreases as the size of the home decreases. For example, a five-bedroom home in London costs an average of £1.2 million, while a four-bedroom home in the same area costs an average of £830,000. This means that a homeowner could save £370,000 by moving from a five-bedroom to a four-bedroom home.
In addition to the financial savings, downsizing can also help homeowners to reduce their energy bills and maintenance costs. Smaller homes are generally more energy-efficient, and they require less maintenance.
However, there are also some drawbacks to downsizing. Moving costs can be expensive, and homeowners may have to give up some of their belongings. They may also have to move further away from their friends and family.
Overall, the decision of whether or not to downsize is a personal one. However, for homeowners who are struggling with financial pressures, downsizing can be a way to reduce their costs and improve their financial situation.
Here are some additional tips for homeowners who are considering downsizing:
- Get an estimate of the financial savings you could expect from downsizing.
- Consider the costs of moving, such as real estate agent fees, closing costs, and moving expenses.
- Think about the impact downsizing will have on your lifestyle, such as the amount of space you need and the distance you are willing to move.
- Talk to your family and friends about your decision.
If you are considering downsizing, it is important to weigh the pros and cons carefully. With careful planning, downsizing can be a way to improve your financial situation and reduce your stress levels.
If you are considering remortgaging, downsizing and want to discuss options to lower your mortgage costs in order to reduce financial pressures, for more information, hit the chat button on the right of the screen, or drop us an email on Andrew@yes-ms.co.uk
Source data:
[1] Research conducted by Halifax – rolling 12 months to July 2022 – 80% LTV, 5.5% – 25yr term, published 16 November 2022.
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