Homeowners Are Downsizing For Retirement
More than a third of homeowners who are considering downsizing their home are doing so in order to support their retirement plans, research by Lloyds Bank has found.
The report found that 45 per cent of homeowners who are planning to sell within the next three years would like to downsize, and 37 per cent of those said it was to support their retirement.
The Lloyds Bank report also found:
- 43 per cent of downsizers want to reduce their bills and outgoings
- 12 per cent wanted to invest in a pension
- 31 per cent want to free up equity to re-invest in something other than property or a pension
- 18 per cent said they would give money to their family
- 29 per cent of those considering downsizing are doing so earlier than they expected.
On average, the potential amount of cash that downsizing could now raise is:
- from a detached to a bungalow: £97,722
- from a detached to a semi-detached: £116,474.
Lloyds Bank’s mortgages director, Marc Page, said:
“Many families view downsizing as a sensible way to lower their bills, help out their children or free up funds for retirement. However, selling your home is not a decision to be taken lightly. It’s important to give careful consideration to whether trading down is the best solution for you and to seek professional advice first.”
Elsewhere, a report from the Post Office revealed that it took an average of 58 days to sell a property in the UK in September. This was 11 days less than in September 2012. There were strong regional variations, however, with the average selling time in Liverpool 18 days compared with 112 days in Hull.
