The UK’s most lucrative regions to downsize

When it comes to property, buyers usually go for the biggest home they can afford, but downsizing and moving could unlock as much as £700,000 for some homeowners.

Moving from a four-bed to a two-bed within London could make up to £414,000, almost half (46%) of the house’s value, according to research by Which?.

Meanwhile, a move from a four-bed in London to a two-bed in the North East could make downsizers up to £771,097 (85% of their property’s overall value). In London, a four-bedroom property sells for £904,778 while a two-bedroom property in the North East costs an average of £118,795.

The North East is a lucrative place to downsize, as it is also the area where homeowners opting to downsize locally can recoup the highest percentage of their property’s value (56%) if moving from a four-bed home worth £284,736 to a two-bed.

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Downsizing is often a decision made by those who now have an empty nest, are struggling to deal with the upkeep of their home or are finding the related costs hard to deal with.

Downsizers who want to move from a four-bedroom property in the South West to a two-bedroom in the North West can expect to unlock up to £283,586 (63% of their property’s overall value). In the South West, a four-bedroom property sells for an average of £447,606, while in the North West a two-bed is an average of £155,626.

If downsizers in the North West prefer to stay in the region, they could unlock up to £183,157 (53% of their property’s overall value) as four-bedroom properties cost an average of £345,730.

Property owners choosing to stay in the South West but get a smaller place could unlock up to £212,251 (47% of their home’s overall value) as a two-bedroom in the area costs an average of £226,961.

Property owners who want to leave the North East to live in the South West can unlock up to £51,694 (18% of their property’s overall value). A move from a four-bed in the North West to a two-bed in the South West would free up £111,822 (32% of the property’s overall value).

Sam Richardson, Which? deputy money editor, said: “Downsizing is far from easy – no house move is – but it can unlock a significant amount of money. Even after additional expenses, such as stamp duty and removal fees, the sums you free up could make a big difference, especially if you’re concerned that your pension won’t go far enough, or you are looking to give financial help to loved ones.

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“Added to that is a chance to experience a new community and part of the country, and find a home that suits you, with potentially less maintenance and upkeep required.”

Alternatively, if downsizers choose to move from a four-bed to a two-bed in Northern Ireland they could unlock up to £112,449 (46% of their property's overall value) as four-bedroom properties there cost an average of £245,272.

If downsizers choose to stay in Scotland but are okay with a smaller property, they could unlock up to £159,264 (50% of their property’s overall value) as four-bedroom properties are an average of £317,360 there.

Which? researchers analysed ONS data looking at average property price based on bedroom count and UK region and factored in costs such as estate agent fees, stamp duty and conveyancing charges.

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