50% of people said they would consider downsizing in the next two years if there was proper support with costs, information and logistics, research from Yorkshire Building Society (YBS) has found.
That figure went up to over 60% for homeowners aged 55 and over.
Lack of suitable local homes was the main issue, with 45% of potential downsizers saying they would move sooner if the right properties were available nearby.
Ben Merritt, director of mortgages at Yorkshire Building Society, said: “Downsizing is an often-overlooked element of the housing market but is vital to freeing up homes for those further down the housing chain.
“Longer-term homeowners are telling us they have a desire to move to something smaller but it’s not possible due to the cost and the fact there is nowhere suitable for them to go and a lack of support to guide them through the process.
“That’s a problem the industry needs to collectively resolve.”
Merritt added: “The Stamp Duty changes which came into force on 1 April will make it more, not less, expensive to move, so these latest findings underline our calls for a strategic review of the housing market, overseen by an independent commission.
“While suggestions that the Government is looking at a potential review of this and other property-related taxes, are potentially positive, it will be important to consider the needs of people at all stages of the housing cycle and avoid the potential for unintended consequences.”
The survey, carried out by 3Gem Research, found the highest desire to downsize was in London, with 68% of respondents there saying they would downsize if given support.
Only 45% of women said they would move to a smaller home compared to 54% of men.
Women were also more likely to say no entirely, showing that emotional and practical barriers are different by gender.
Another survey focused on over-55s found that 59% said they did not know where to start when it came to finding a suitable smaller home.
Merritt added: “Clearly, a significant proportion of UK homeowners have the equity, motivation and a clear desire to downsize — but the system isn’t set up to help them do it.
“Government and industry now need to unite behind changing that to free this property log jam for the good of people at all stages of the homeownership journey, not least the first-time buyers who are essential to whole housing chains.”
