Downsizing payouts

A survey conducted by Lloyds TSB recently found that Just over half of home owners they surveyed who are planning to move house in the next three years said they plan to downsize, compared with just over a fifth (22pc) who are looking to trade up to somewhere bigger.

63pc of those looking to downsize are aged over 55, more than a quarter are aged between 46 and 55 and around 5pc are aged between 36 and 45. 33pc of potential downsizers saying they need to move to reduce their household bills and 37pc saying they would like to free up some equity. Three in 10 of those planning to trade down said they were doing so to boost their retirement income.

Trading down from a detached home to a bungalow could produce an average windfall of just over £97,000 across the UK. Meanwhile, someone downsizing from a detached home to a semi-detached property across the UK could gain just over £120,000 on average, a 46pc increase on the £82,412 typical windfall in 2002.

Stephen Noakes, mortgage director for Lloyds TSB, said: "Downsizers are now playing a key role in the housing market and, as the study shows, we are starting to see home owners on different stages of the property ladder considering it a sensible option as more and more families are looking at ways to save money." Whatever stage of the housing cycle you are facing Enable’s IFA’s can help you find the best financing deals to suit the needs of your family.