Jack Malnick, managing director at Sell House Fast, said many older homeowners are now choosing to downsize to unlock equity or cut monthly costs.
A recent report found that 34% of buyers aged 65 to 74 downsized in the past five years, rising to 47% for those aged 75 and over.
Malnick said: “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.
“This approach is particularly valuable for those approaching retirement, turning an asset-rich but cash-poor situation into financial flexibility.
“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.”
Malnick added: “Beyond mobility, reduced maintenance frees up time and energy for hobbies, travel, or even a more relaxed lifestyle.
“Before making the move, however, it’s important to weigh up factors such as the availability of suitable properties, the cost of relocation, and the location itself.
“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.”
He said: “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.
“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.”
