A Barclays survey found that over half (53%) of homeowners had no desire to downsize to a smaller house. Homeowners who had considered downsizing said they would be required to make at least £108,000 in profit to make it worthwhile.
Two main factors that put people off downsizing are the emotional upheaval of moving and high costs, including stamp duty, legal fees and removal charges. For 27% of respondents, the high cost of stamp duty was the top reason they didn’t downsize. Seventy per cent of homeowners said abolishing stamp duty, or significantly reducing it, would encourage them to downsize.
A Barclays spokesperson said:
“Not only are costs themselves a barrier, but the homeowners surveyed also had high expectations about the money they would have to unlock to consider downsizing financially worthwhile.”
People who would like to downsize for retirement find that a lack of suitable and affordable properties is a barrier.
Research by Which? found that homeowners who had lived in their house for many years could make a profit of up to 56% of the value of their existing home by moving to a smaller house.
Of those who have downsized or are considering doing so, most say the money made from the transaction is mainly used, or would mainly be used, as a financial safety net.
If you are downsizing and looking for removal companies in Merseyside, have a chat with a member of our team at Merseyside Movers & Storers about how we can safely and securely move your belongings to your new home.
