Lloyds TSB has found through their recent research that the housing market is being driven by homeowners looking to downsize their property.
It’s been a difficult couple of years for the housing market which has seen property prices changing constantly. The number of sales and properties on the market has also been unsteady.
The research found that moving to a smaller property is the main reason people are selling their homes. One in five homeowners revealed they were downsizing earlier than expected and a third intended to move properties to receive lower household bills. Reasoning for this stated from people who took part in the survey said that the cost of living was making it hard to maintain a property of a certain size and location. Cheaper household bills and financial worries were also reasons why people are downsizing.
Unsurprisingly older homeowners are the ones looking to downsize but the research highlighted that different age groups are now considering the same option. According to the results 63% aged over 55 were doing this as well as 28% aged between 46 and 55 and over 5% aged between 36 and 45.
Stephen Noakes, Mortgage Director, Lloyds TSB commented: “Downsizers are now playing a key role in the housing market and as the study shows we are starting to see homeowners on different stages of the property ladder considering it as a sensible option as more and more families are looking at ways to save money.
“Whilst we have seen a significant rise in the potential cash windfall, downsizing can make a lot of sense for a wide range of people, it is important to consider carefully whether trading down is the best solution. Whether you are looking to lower utility bills, pay for an offspring’s tuition fees, or free up extra cash for retirement we recommend you seek professional advice before taking action.”
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By Amanda Bainbridge