Average downsizing windfall rises to over £100,000

East Anglia sees biggest growth in downsizing windfall since 2004.

Homeowners stand to raise over £100,000 by downsizing to a semi-detached home, according to the latest Downsizers Report from Lloyds Bank.

Moving from a detached house to a bungalow frees up £103,715 on average, while moving to a semi-detached house could raise an impressive £121,686.

The last time Lloyds looked into downsizing, at the end of 2013, the average amount raised was just under £98,000.

Region-by-region breakdown

When it comes to moving from a detached house to a bungalow, East Anglia has seen the largest average windfall increase over the last decade of £24,500 (38%), followed by the South West at £22,664 (32%) and Northern Ireland at £11,477 (29%).

Region

Downsizing windfall 2004

Downsizing windfall 2014

10 year percentage change

10 year change in cash terms

East Anglia

£64,330

£88.831

38%

£24,500

South West

£71,210

£93,875

32%

£22,664

Northern Ireland

£39,435

£50,912

29%

£11,477

North

£60,833

£70,044

15%

£9,211

Scotland

£58,721

£65,971

12%

£7,250

West Midlands

£69,566

£75,428

8%

£5,862

South East

£156,699

£169,508

8%

£12,809

Yorkshire and the Humber

£70,374

£75,887

8%

£5,513

East Midlands

£65,016

£67,711

4%

£2,696

Wales

£68,933

£64,327

-7%

-£4,606

North West

£83,233

£76,193

-8%

-£7,040

Greater London

£319,372

£289,927

-9%

-£29,445

UK

£95,634

£103, 715

8%

£8,081

Source: Lloyds Bank

Unsurprisingly, downsizers in London could potentially make the most, getting £289.927 for trading down from a detached home to a bungalow. That said, the windfall has dropped by 9% over the past decade, placing them at the bottom of the league table.

Here’s what downsizers could stand to earn if they move from a detached to a semi-detached home:

Region

Downsizing windfall 2004

Downsizing windfall 2014

10 year percentage change

10 year change in cash terms

South West

£107,029

£126,737

18%

£19,707

North

£87,271

£100,638

15%

£13,367

Scotland

£88,751

£101,805

15%

£13,053

Northern Ireland

£62,301

£70,669

13%

£8,368

East Anglia

£91,594

£102,844

12%

£11,250

South East

£174,996

£191,955

10%

£16,959

Yorkshire and the Humber

£101,160

£105,865

5%

£4,706

East Midlands

£96,034

£100,465

5%

£4,431

Wales

£91,411

£91,244

0%

-£167

West Midlands

£112,163

£111,540

-1%

-£623

North West

£106,374

£103,754

-2%

-£2,619

Greater London

£269,627

£237,614

-12%

-£32,014

UK

£112,744

£121,686

6%

£6,943

Source: Lloyds Bank

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Who downsizes - and why?

According to the Lloyds report, the average downsizer is 56 years old, has lived in their property between 11 and 20 years, having moved into that property at the age of 39.

Downsizing is a big driver behind property market activity, with more than half (52%) of homeowners that plan to sell their property in the next three years saying they’d like to move to a smaller house.

The biggest motivating reason is wanting to find a smaller house that better suits their circumstances (63% of those that plan to downsize). Other reasons include reducing bills and outgoings (40%), releasing equity (28%) and supporting their retirement plans (25%).

A quarter of downsizers are doing so earlier than expected, for a variety of reasons including health, a change in their relationship status and how close they are to amenities.

Compare mortgages with lovemoney.com

More on housing:

Bumper start to 2015 for housing market

House prices continue slowdown, says Halifax

Nationwide: house price growth slows again

The best place to live in the UK

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