Downsizers seek £108k equity release to justify move

Homeowners in the UK would need to release an average of £108,516 from their property to consider downsizing worthwhile, according to new research from Barclays.

The bank’s survey of 2,000 people found that a quarter of homeowners are open to downsizing, but seven in 10 cite financial risks and upfront costs as barriers to making the change.

Upfront costs deter downsizers

The research revealed that only one in 10 homeowners surveyed have downsized, rising to a fifth among Baby Boomer homeowners, but just 5% of Generation X.

Among those yet to make the move, upfront costs present the clearest financial deterrent. More than a quarter of homeowners—27%—say Stamp Duty is putting them off, while 21% cite moving and removal costs, 20% renovation or adaptation costs and 19% legal or conveyancing fees.

The findings come as regulatory changes continue to reshape the property market, with transaction costs remaining a significant consideration for those looking to move.

Industry calls for government support

In response to the findings, Barclays has called on the Government to consider incentives for downsizing, including targeted financial help and better signposting of new developments and age-suitable housing.

Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: “Downsizing can give homeowners the opportunity to find a property that better suits their needs, reduce household costs and strengthen their financial resilience.”

He added: “However, the decision is rarely as simple as moving to a smaller home. Significant upfront costs and a shortage of suitable options can make a move difficult to justify, even for those who are open to it.”

Patel noted that for many homeowners, the priority is not simply releasing the maximum amount of money, but finding the right home in the right place for their stage of life.

Market implications

The research highlights a potential constraint on housing market fluidity, with older homeowners occupying larger properties while younger buyers face limited stock. The findings suggest that fiscal barriers may be preventing natural market movement, with implications for both the downsizing demographic and first-time buyers seeking family homes.

While alternative financing options continue to develop, the survey indicates that transaction costs remain a primary concern for those considering a property move in later life.