East Anglia sees biggest growth in downsizing windfall since 2004.
Homeowners stand to raise over £100,000 by downsizing to a semi-detached home, according to the latest Downsizers Report from Lloyds Bank.
Moving from a detached house to a bungalow frees up £103,715 on average, while moving to a semi-detached house could raise an impressive £121,686.
The last time Lloyds looked into downsizing, at the end of 2013, the average amount raised was just under £98,000.
Region-by-region breakdown
When it comes to moving from a detached house to a bungalow, East Anglia has seen the largest average windfall increase over the last decade of £24,500 (38%), followed by the South West at £22,664 (32%) and Northern Ireland at £11,477 (29%).
|
Region |
Downsizing windfall 2004 |
Downsizing windfall 2014 |
10 year percentage change |
10 year change in cash terms |
|
East Anglia |
£64,330 |
£88.831 |
38% |
£24,500 |
|
South West |
£71,210 |
£93,875 |
32% |
£22,664 |
|
Northern Ireland |
£39,435 |
£50,912 |
29% |
£11,477 |
|
North |
£60,833 |
£70,044 |
15% |
£9,211 |
|
Scotland |
£58,721 |
£65,971 |
12% |
£7,250 |
|
West Midlands |
£69,566 |
£75,428 |
8% |
£5,862 |
|
South East |
£156,699 |
£169,508 |
8% |
£12,809 |
|
Yorkshire and the Humber |
£70,374 |
£75,887 |
8% |
£5,513 |
|
East Midlands |
£65,016 |
£67,711 |
4% |
£2,696 |
|
Wales |
£68,933 |
£64,327 |
-7% |
-£4,606 |
|
North West |
£83,233 |
£76,193 |
-8% |
-£7,040 |
|
Greater London |
£319,372 |
£289,927 |
-9% |
-£29,445 |
|
UK |
£95,634 |
£103, 715 |
8% |
£8,081 |
Source: Lloyds Bank
Unsurprisingly, downsizers in London could potentially make the most, getting £289.927 for trading down from a detached home to a bungalow. That said, the windfall has dropped by 9% over the past decade, placing them at the bottom of the league table.
Here’s what downsizers could stand to earn if they move from a detached to a semi-detached home:
|
Region |
Downsizing windfall 2004 |
Downsizing windfall 2014 |
10 year percentage change |
10 year change in cash terms |
|
South West |
£107,029 |
£126,737 |
18% |
£19,707 |
|
North |
£87,271 |
£100,638 |
15% |
£13,367 |
|
Scotland |
£88,751 |
£101,805 |
15% |
£13,053 |
|
Northern Ireland |
£62,301 |
£70,669 |
13% |
£8,368 |
|
East Anglia |
£91,594 |
£102,844 |
12% |
£11,250 |
|
South East |
£174,996 |
£191,955 |
10% |
£16,959 |
|
Yorkshire and the Humber |
£101,160 |
£105,865 |
5% |
£4,706 |
|
East Midlands |
£96,034 |
£100,465 |
5% |
£4,431 |
|
Wales |
£91,411 |
£91,244 |
0% |
-£167 |
|
West Midlands |
£112,163 |
£111,540 |
-1% |
-£623 |
|
North West |
£106,374 |
£103,754 |
-2% |
-£2,619 |
|
Greater London |
£269,627 |
£237,614 |
-12% |
-£32,014 |
|
UK |
£112,744 |
£121,686 |
6% |
£6,943 |
Source: Lloyds Bank
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Who downsizes - and why?
[SPOTLIGHT]According to the Lloyds report, the average downsizer is 56 years old, has lived in their property between 11 and 20 years, having moved into that property at the age of 39.
Downsizing is a big driver behind property market activity, with more than half (52%) of homeowners that plan to sell their property in the next three years saying they’d like to move to a smaller house.
The biggest motivating reason is wanting to find a smaller house that better suits their circumstances (63% of those that plan to downsize). Other reasons include reducing bills and outgoings (40%), releasing equity (28%) and supporting their retirement plans (25%).
A quarter of downsizers are doing so earlier than expected, for a variety of reasons including health, a change in their relationship status and how close they are to amenities.
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