Big houses are great when they are full of kids, family or friends. But there may come a time in your life when you realise that the big house is largely empty and costing you a fortune to keep. This could be before you have had kids and you are looking to save, or once your offspring have grown up and flown the nest.
Downsizing doesn’t have to be a negative experience. There are plenty of benefits to finding a smaller place that suits you better. If you are considering it, here are some pros which might just convince you.
Releasing equity
If you have had your home a long time, chances are it will have gone up in value. This means there is a lot of equity in your home just waiting to be freed up.
By selling up and buying a smaller, cheaper place you will have the profits to spend however you like. It could finance a holiday, some home renovations or can simply accrue interest for your retirement.
Some homeowners will have qualified and applied for a lifetime mortgage. Some policies come with downsizing protection which allows you to move into a smaller property and repay the plan in full without any early repayment fees. Remember to check your policy documents before committing to moving, though.
Hassle-free life
Saving a bit of money here and there is something that everyone is looking to do. When it comes to a smaller property, it is quite simple. It is basic maths – fewer rooms mean less space to heat. Less heating being used means cheaper bills. Who doesn’t want cheaper bills?
An analysis of Ofgem figures shows that the average monthly cost for a five-bedroom home for gas and electricity in 2024 is £201. When you compare this with £104 for a one-bedroom property, the bill is nearly halved.
Downsizing can also mean less maintenance. Things such as hiring a window cleaner monthly may save you a few pounds each time as you will have fewer windows to clean, for example. You should also consider the amount of maintenance you do as well. You may be perfectly fine to hoover and mop all the floors, but you may struggle with these tasks in the future.
Moving to a better location
Moving to a better location is something that moving at any time in your life will make you consider. What constitutes a better location is different for everybody. Some potential downsizers might want to be closer to family. This is especially true if grandchildren are being born into the family. As you get older, priorities change and making lasting memories with your loved ones is crucial.
If you have been living peacefully in a more rural area, moving to a better-served area could be better. Your healthcare needs may change so having quick access to hospitals or GPs should be important.