Downsizers are a crucial part of the UK housing sector, playing a significant role in creating movement within the property market. By freeing up hundreds of thousands of empty bedrooms annually, they account for nearly a third of all property sales. But the motivations driving downsizers are evolving.
Historically, downsizers have been viewed as empty nesters looking to simplify their lives by selling large family homes and moving to more manageable properties. While this description still applies to some, new research has shown that the picture is far more diverse.
A recent report by Hamptons divides downsizers into four distinct groups and examines how their motivations have shifted over the years. Let’s take a closer look.
1. Trading Down in Size and Value
This group is focused on making a significant change, opting for a much smaller home (with at least two fewer bedrooms) and a reduced price tag. Amid the ongoing cost-of-living crisis, the proportion of downsizers in this category has risen dramatically from 16% in 2017 to 25% in 2024. These movers are often seeking to cut household expenses or fund other priorities.
2. Downsizing in Value
A growing number of downsizers are prioritising financial savings over reducing their living space. While they may move to a slightly smaller home (with a maximum of one fewer bedroom), their primary goal is to reduce costs by trading down in value. This group has seen a sharp rise, climbing from 27% in 2017 to 40% in 2024, reflecting the impact of rising mortgage rates and household budgets.
3. ‘Traditional’ Downsizers
These are the familiar empty nesters many people associate with downsizing. They’re moving out of large family homes they no longer need, typically to reduce maintenance and energy costs. However, this group has become less common, decreasing from 24% in 2017 to 18% in 2024.
4. Change of Scene Downsizers
Not all downsizers are seeking drastic changes in space or value. This group, though shrinking (from 34% in 2017 to 16% in 2024), is characterised by individuals looking for a fresh start in a new location. Whether it’s for lifestyle reasons, a new adventure, or a change of scenery, they’re less focused on downsizing in the traditional sense.
Motivations Behind Downsizing
Even well-established homeowners are feeling the financial pressures of today’s economy, with many downsizers motivated by the need to release equity or reduce costs.
Another major driver is the continued role of the Bank of Mum and Dad. With housing affordability remaining a challenge for younger generations, many downsizers are selling their homes to help their children step onto the property ladder. This trend underlines the growing importance of financial considerations in downsizing decisions.
Ready to Downsize?
If you’re considering downsizing this year, contact us for a valuation and expert advice tailored to your unique needs. Our team can guide you through the process, ensuring a smooth transition to your next home.
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