Printer Friendly

Young owners thinking smaller for big reward; It is not just pensioners who are looking to cash in by downsizing their family homes, says Simon Morton from Strutt & Parker, their children are at it too.

Byline: Simon Morton

Homeowners can potentially raise a six-figure sum by downsizing.

A report from Lloyds Bank reveals reducing bills and preparing for retirement are the most common reasons for moving into a smaller residential property.

People stand to raise an average of PS97,722 by downsizing, while those doing so in London can typically raise PS272,000.

But while people who are looking to retire may make up the majority of those within the downsizing market, it is also an option being widely considered by younger generations as they look to survive the tough economic climate.

Some 43 per cent of downsizers, for instance, want a smaller property to help reduce utility bills compared to 37 per cent who see downsizing as a way to help support them in their later years.

The average age of those looking to downsize is 40 years old, with 26 per cent of potential downsizers aged just 26 to 35.

A further 26 per cent are between 36 and 45 years old while 24 per cent are in the 46 to 55 age bracket - driven by the financial rewards on offer.

People are realising that downsizing is an exciting opportunity. The bravest downsizers don't seek a smaller replacement of their former home, but something offering a new and inspiring way of life. Perhaps a modern barn conversion, or a town house with a small garden that can be locked up and left while they travel the world blowing the kids inheritance.

For those trading down early, the potential amount that can be raised by downsizing from a detached property to a bungalow has jumped by 12 per cent, or PS10,221, over the past decade to an average of PS97,722.

The potential amount of cash that home owners can raise by downsizing their property from a detached home to a semi-detached has risen by 13 per cent, or PS13,910, to PS116,474 during the same period.

It certainly paints an attractive picture - one which means an increasing number of people are now open to the possibility of such a move.

Some 45 per cent of home owners planning to sell their property in the next three years claim they would like to downsize, of which 32 per cent are looking to move to a detached house, 26 per cent are looking to move to a semi-detached house and 45 per cent are looking to move to a bungalow.

Overall, 29 per cent of those considering moving to a smaller property are doing so earlier than they expected.

CAPTION(S):

Simon Merton of Strutt and Parker
COPYRIGHT 2013 Birmingham Post & Mail Ltd
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Features
Publication:The Birmingham Post (England)
Date:Dec 5, 2013
Words:434
Previous Article:CALA's luxe new builds.
Next Article:Stables is home for more than the horses; This Gloucestershire barn has been charmingly converted to offer comfortable quarters for a family and...
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters