Downsizers in England and Wales could gain an average of £305,090 by moving from a four-bedroom to a two-bedroom house, according to Savills.
This move could provide a tax-free income of £1,218 per month based on a 20-year life expectancy from age 65, with 1.29 million homeowners aged 65 and over potentially benefiting.
Lucian Cook, head of residential research at Savills, said: “Understandably, homeowners have traditionally been reluctant to downsize…but it is increasingly commonplace for people to look at their home as a way of supplementing their pension provision.”
The analysis also uncovers a North-South divide, with Londoners able to unlock the most equity, averaging £2,523 a month, compared to £826 a month for those in the North East.
Cook further commented: “This analysis lays bare the north-south divide when it comes to downsizing…For those in the Midlands and the North there is far less to be gained by downsizing and they’re therefore likely to leave downsizing until later in life, if indeed they downsize at all.”
