A third of households consider moving to save money, says Halifax

Nearly a third of households are considering changing their living arrangements to help with the cost-of-living crisis, according to new research from Halifax.

The bank, one of the UK’s largest mortgage lenders, said the survey showed three in 10 respondents (30 per cent) have already considered options such as downsizing, moving or living together.

Nearly one in five (17 percent) say they have thought about downsizing to help cover rising costs.

Those living in central London are most likely to consider moving or downsizing to cut costs, with 32 per cent respectively saying they have considered both.

Nearly two-thirds (60 percent) of those surveyed said moving to a smaller house to help with living expenses would be something they would consider if necessary, and not rule it out.

Kim Kinnaird, director of mortgages for Halifax, said: ‘With many people looking at the options for taking their money further and making the most of their assets, moving to a smaller home is something many people could consider.

“For those for whom it’s an option, downsizing can reduce mortgage costs which can help with living costs or free up significant equity for a financial buffer.”

But it’s not without its own challenges. The time it may take to move home, the distance from friends and family, and the limited space can raise questions about whether moving to a smaller house could work.”

When considering downsizing, 72 percent said saving money was one of the benefits, while a third (33 percent) listed it as the main benefit.

Based on Halifax’s analysis of house prices of houses of various sizes, a move to a one-bedroom house smaller would net an average of £120,820.

Money can be saved in all regions of the UK by downsizing to a single bedroom, with most homes having 5 and 4 and 4 and 3 bedrooms. On average, the monthly mortgage savings can be £935 or £809 respectively.

However, there are also disadvantages to cutting back. Moving costs were most often cited as one of the top drawbacks of moving to a smaller home (39 percent of people listed it in their top 3 drawbacks).

Mortgage prices have risen sharply in recent months, adding to the financial problems

Distance from family and friends (29 percent) and being in an unfamiliar environment (28 percent) were also major concerns for making such a move.

Mortgage costs have skyrocketed in recent months and rents in the UK are also rising to record levels.

The average rent for a home has reached £1,204 a month, according to Hamptons real estate agents with renter households now typically spend 44 percent of their after-tax income on rent.

Before the mini-Budget on Friday, Sept. 23, the average two-year fixed rate across all loan-to-value brackets was 4.74 percent and the five-year fixed rate was 4.75 percent, according to Moneyfacts.

Rates now stand at 6.28 percent and 6.07 percent, respectively, both down since the announcement of the base rate on Nov. 3. This comes on top of a deteriorating economic environment.

New CPI inflation data will be announced this week and is forecast to exceed the current level of 10.1 percent.