A poll of over 2,000 adults carried out by Suffolk Building Society found homeowners in Southern regions were more open to the idea of downsizing, with 14% of those in the South thinking about this compared to 10% in the North.
This figure was even higher in London, where a quarter of homeowners said they thought about downsizing. Suffolk Building Society suggested this was probably due to the higher housing prices and cost of living.
The mutual said with homes in the UK priced at around eight times the average income, it expected many people would consider downsizing to free up cash and help younger family members get onto the housing ladder.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “Not every downsizer needs a mortgage, but an increasing number do, due to the rising cost of living and current property prices. For some, it’s a repayment vehicle for an existing interest-only mortgage that’s come to the end of its term. Therefore, it’s an important conversation for brokers to be having with their clients.
“Encouraging homeowners to think about downsizing earlier rather than later means they’re well-prepared to move at a time that suits them – or enjoy the cash they may free up from it. Being aware of all options of homeownership, including downsizing, means that people can make informed decisions in a timely manner and consider just what the right option for them looks like.”
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She added: “Downsizing could also help to free up some of the UK’s housing stock and create momentum in the market for buyers, with larger houses becoming available for growing families. Over time, this may make it easier for more people to get onto the property ladder, as housing stock becomes available at the lower end. It could also benefit those further up who may be feeling the financial squeeze from the cost of living or looking to support their grown-up children.
“In setting out targets for new home construction, the government clearly acknowledges the UK’s housing crisis. Certainly, more homes are needed to meet demand. But we’d also welcome some shorter-term policies, such as encouraging downsizing, to get the housing market moving across existing housing stock, while the building sector gears up to meet the challenge.”
