New figures from Prudential show that 40% of homeowners aged over 55 are planning to sell their homes, and a significant 75% of those are aiming to downsize.

Having too much space appears to be the main driver for downsizing, according to 61% of homeowners over the age of 55.

The convenience of running a smaller home (58%), accessing equity (34%), reducing the day-to-day running costs of living in a large home (22%) and changes in personal circumstances, including divorce and separation (21%), complete the top five reasons for downsizing.

Stephanie McMahon, Head of Research at Strutt & Parker, said: “Our own analysis following our Housing Futures survey shows that 21% of people who move are doing so to downsize to a smaller home and with on average 47% of privately held homes across UK local authorities under-occupied this comes as no great surprise.”

Guy Robinson, head of residential agency at Strutt & Parker’s, said: “People’s homes are usually their most valuable asset and the financial benefit of downsizing can be very appealing. By selling a larger property and moving to somewhere smaller and more manageable, you can cost save on home maintenance and release equity at the same time. Both represent good ways to help boost your retirement fund for later life.”

The All Party Parliamentary Group (APPG) on Housing and Care for Older People has recently called for a ‘Help to Move’ scheme for the elderly. Research from think tank Demos found that a third of homeowners over 60 would consider downsizing but up to half cannot afford to move to a retirement property locally.

A ‘Help to Move’ equity loan for over-60s wanting to downsize would help older homeowners with lower value properties (up to £250,000) bridge the gap between the value of their home and the purchase price of a new retirement property. APPG also called for stamp duty to be abolished for over-60s wishing to downsize to homes priced at £250,000 or less.

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