WORRIED about funding their retirement, Anna Wallace and Graham Reagan were rattling around a four-bed house before downsizing and saving £1,200 a month on their mortgage. The move will also allow them to pocket £50,000 to put into Graham’s pension. 4 We investigate the pros and cons of moving to a smaller, cheaper property — and how barriers are stalling the housing market Credit: Alamy More than 460,000 homeowners are expected to downsize this year, according to estate agents Hamptons.
This week Samantha Partington investigates the pros and cons of moving to a smaller, cheaper property — and how barriers are stalling the housing market. Should you downsize? ON average, those who downsize buy a property that is £139,000 cheaper, according to figures from removals comparison site reallymovi n g.com .
If you are mortgage-free, you pocket this amount, known as equity, and can use it for your next home purchase. The amount of equity you can expect varies from area to area. On average, homeowners in Yorkshire and the Humber bank £167,000, downsizing from a home worth £442,000 to one priced at £275,000.
READ MORE ON DOWNSIZING moving day Kerry Katona shares first look at new home after downsizing from £2m mansion Those living in the East Midlands can expect to bank less than half that amount at £81,000. If you have a mortgage to repay, your equity is what you have got left after paying back your debt. Such sizeable sums can be used to support income into retirement, .