Why there’s never been a savvier time to cash in downsizing from a detached home to a semi

Homeowners with detached homes who downsize to a semi-detached home could reap a windfall more than four times what it would be in 2020, experts say.

These movers now typically bank £205,157 – up from £44,226 in 2020, according to Jackson-Stops.

The national brokerage group says there has been a 21 percent increase in downsizing requests since 2019.

More people at the top of the ladder are tempted to put their homes up for sale because of major value increases and sky-high energy bills.

According to Jackson-Stops, almost £600 billion in equity could be freed up by the UK’s downsizers by moving to a smaller home.

Realtors are predicting a spring boom in people with large homes being sold, while mortgage rates are now falling.

And Surrey has become the downsizing hotspot. An owner of a four-bedroom detached house moving into a three-bedroom semi-detached house in the county would typically be able to bank £800,000 in equity.

Jackson-Stops chairman Nick Leeming says, “Baby boomers are prominent in our housing landscape and hold the key to unlocking real estate.

‘The sale of a beloved, often large, detached single-family home is usually delayed until long after the children have left the nest.

They may be facing a cold winter now, with many unused rooms. Downsizing can relieve this tension, freeing up money to enjoy life.’

Agents say the number of questions from downsizers increased in the last months of last year. A Jackson-Stops agent says this was the highest level of downsizing they’ve ever seen.

Most interest comes from movers between the ages of 70 and 90 who want to stay local and move from four- to six-bedroom houses to ground-level apartments with low running costs.

Winkworth Estate Agents sees a similar trend in its country offices. Realtors are talking to older homeowners who don’t want to pay more to heat empty rooms and can’t maintain large homes with acres of land.

Value gains: Jackson-Stops says nearly £600bn of equity could be freed up by UK downsizers by moving into a smaller home

By moving from a drafty five-bedroom house to an energy-efficient two-bedroom house, downsizers could save £5,000 a year in heating costs, according to the charity Intergenerational Foundation.

In 2022, the contraction increased. Moving company, reallymoving.com, saw a 41 per cent increase in people downsizing last year, freeing up an average of £86,000 by moving to smaller premises.

However, many owners are now waiting out the winter months and plan to put their homes up for sale in the spring.

Simon Jacobs, managing director of the Winkworth Devizes and Marlborough offices in Wiltshire, says things are starting to move at the top of the housing ladder.

“We get a lot of invitations for market valuations of baby boom homes,” he adds.

“Many bought their homes in the 1970s and 1980s and have seen the value rise.

“Now they’re rattling around of those big houses with big gardens that were affordable, but are less because of the crisis of the cost of living.”

Growing trend: moving services company, reallymoving.com, saw a 41% increase in people downsizing last year, freeing up an average of £86,000 by moving into a smaller home

Retired professional ballet dancers Ole and Yvonne Dideriksen are downsizing for the second time.

Their two-bedroom apartment in Tunbridge Wells, Kent, is on the market at Hamptons for £675,000. It is on two floors and has no stairs.

Yvonne, 82, says they are both fit and healthy, but recently have seen friends and family who had not made plans for their future develop dementia or Parkinson’s disease.

“We want to downsize to a smaller and more secure facility that is easier to manage and doesn’t come with the same high monthly fees we pay now,” says Yvonne.

The couple say there is a lack of suitable housing for people their age unless they move into a retirement home. They are looking for a smaller apartment with a price between € 500,000 and € 550,000.

After paying stamp duty and attorney fees, Yvonne says the remaining money will allow them to live independently and pay for health care and nursing when needed.

Ann Watney moved into her detached six-bedroom house in Dorking, Surrey, in 1985 with her three young children, paying £153,000.

David, 77, her now husband, moved in with his two children a few years later. Their house is now for sale for £1.275 million.

The property has a tennis court and a heated outdoor swimming pool which the family loved to play in in winter but which is no longer used, partly due to heating costs.

They are now in their 70’s and their family is scattered all over England and as far as Australia. Ann, 75, a retired architect, says: ‘We’ve loved living here, but we only use half of the house.’

The couple decided to sell before the mini-budget in September, unfortunately causing the real estate market to surge.

Ann and David have seen several three-bedroom detached houses in the £800,000 to £900,000 range, but they can’t make an offer until they find their own buyer.

“Like many people our age, we are rich in stocks and poor in income,” says Ann. “Downsizing would give us more money to spend on ourselves, help our family, and improve our new home.”

moneymail@dailymail.co.uk

Mortgage rates are rising again

Major banks are introducing standard variable mortgage agreements ahead of the Bank of England’s base interest rate decision

Major banks are running standard variable mortgage contracts ahead of the Bank of England’s decision on base rates tomorrow.

The base rate is currently 3.5 percent. HSBC and First Direct increased their SVR deals by 0.5 percentage point to 6.79 percent on Monday.

Last week, RBS and NatWest also raised rates by 0.5 percentage point to 6.74 percent.

The average SVR already stands at 6.73 percent, up from 3.82 percent just over a year ago, according to broker London and Country (L&C).

It will put more pressure on the 895,000 households currently using their lender’s SVR.

For a family with a £400,000 mortgage, an increase of another 0.5 percentage point would add £128 a month to bills.

David Hollingsworth, from L&C, says: ‘SVRs are now substantially more expensive than flat rates. There’s a mortgage price war right now and it’s going on and on.’

a.cooke@dailymail.co.uk