Property specialist highlights how selling larger homes can unlock equity and reduce expenses
Downsizing could offer a pathway to greater financial independence for older homeowners, according to a property specialist.
As living costs rise and more individuals seek to make better use of their property assets, moving to a smaller home is increasingly viewed as a means to release equity and reduce ongoing expenses.
A recent report from the Open Property Data Association shows that 34% of people aged 65 to 74 have downsized in the past five years, with the figure rising to 47% for those over 75. The trend highlights how many are turning to smaller properties to improve their financial position in later life.
The rise in downsizing among older homeowners signals increased demand for advice on equity release, remortgaging, and suitable lending products for later life. There is an opportunity for mortgage brokers to guide clients through the financial and logistical aspects of selling and buying, help them understand costs and recommend solutions tailored to smaller properties or retirement needs.
“Downsizing to a smaller home can allow UK homeowners to unlock equity tied up in their property or reduce monthly expenses, allowing them to pay off any debts or build financial stability for the future,” said Jack Malnick (pictured right), managing director and property expert at Sell House Fast.
“This approach is particularly valuable for those approaching retirement, turning an asset-rich but cash-poor situation into financial flexibility.”
Malnick pointed out that smaller homes are often easier to manage, both physically and practically. “Moving to a smaller space, such as a bungalow or ground-floor apartment, can make daily living far less stressful for individuals with reduced mobility or health concerns,” he said. “Beyond mobility, reduced maintenance frees up time and energy for hobbies, travel, or even a more relaxed lifestyle.”
Malnick, however, stressed the importance of weighing up factors such as the availability of suitable properties, the cost of relocation, and the location itself before making the move. He added that popular relocation hotspots may be pricier than expected, while additional costs like stamp duty, legal fees, and moving expenses can quickly add up, making careful planning essential.
“Releasing capital from a larger property can allow homeowners to increase pension income, reinvest, or fund new experiences, providing financial security and peace of mind, while enabling them to make the most of their later years,” Malnick said.
“While financial and practical benefits are clear, emotional considerations remain important. Leaving a long-time family home can be challenging, but when balanced with practical needs and long-term goals, downsizing is a pathway to financial freedom, reduced stress, and a lifestyle better suited to evolving needs.”
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