During 2025, around 37% of all UK homebuyers were people looking to downsize to a smaller home, representing one of the largest demographics in the country. Likewise, data from Reallymoving suggests that as of September 2025, around 25% of UK home movers were buying a property for less than they were selling for.
Downsizing has always been a core aspect of the UK property market but at the time of writing, there’s definitely been a shift in why people choose to downsize. Instead of selling their current home and moving into an equally expensive but more manageable property, downsizers are increasingly focusing on ways to reduce their monthly outgoings, particularly in high-value areas such as the South East.
The average age that people are choosing to downsize is also changing. Hamptons suggests that people are making the move earlier in life, opting to downsize in their 40s and 50s in an effort to reduce their monthly mortgage payments whilst avoiding the utility bills that come with a larger property.
With that in mind, we’re exploring the various pros and cons associated with downsizing your home in case you’re looking to make the change in 2026.
What are the pros of downsizing?
Whatever your reasoning for downsizing, whether that’s saving money or finding a more manageable property, downsizing your home offers a number of key benefits:
Live in a more suitable location
A common benefit for many downsizers is the opportunity to move somewhere more suited to your life. Typically, the place you buy your first home may not be exactly what you’re looking for after say, 20 years, especially as you start to build a family and your priorities change.
Take, for example, people who choose to buy in more urban areas during their 30s as it offers great access to nightlife, restaurants and offers a more active lifestyle. When these people are in their 40s or 50s, they might prefer a slower pace of life with great access to transport links and good schools. This is where downsizing to a more rural area is more preferable and a common move for many older buyers.
We also see many people downsize because they’re looking to move closer to family, particularly parents who move closer to support new grandchildren and generally offer support.
Release equity
A major benefit of downsizing is that it allows you to free up any equity locked in your existing property. By selling your current home and buying a less expensive property, you may be able to use the remaining money to pay off your mortgage, fund the remainder of your retirement or even support family members.
What does this look like in practice? Say you’ve paid off your mortgage, sell your current home for £250,000 and buy a new home for £125,000. This automatically unlocks an additional £125,000 that can be used however you like. Even if you haven’t paid your mortgage off, in most instances you’ll be able to use the money from the sale to pay the remainder of the mortgage (in this instance let’s say £25,000 is remaining) and still have £100,000 left.
Reduce your monthly outgoings
Downsizing to a smaller property not only means cheaper mortgage payments but also directly impacts how much you pay in utility bills.
According to data from EDF Energy, the average fuel bill for a house with 1-2 bedrooms is £106 in total. Now consider that the average fuel bill for a house with 5-6 bedrooms is £206 in total. Moving to a smaller property offers around £100 in savings and that’s before we consider any additional energy efficiency features. If you downsized via Shared Ownership, for example, you could find yourself in a brand new home with smart features designed specifically to reduce your bills further.
Less maintenance
Finally, a smaller home naturally means less cleaning and less potential for anything to go wrong, meaning less overall maintenance. It’s important to remember that while you might not struggle to keep a three-bedroom house tidy now, how would you deal with it when you’re older?
What are the cons of downsizing?
As with all things, whilst there are plenty of benefits to downsizing, there are also some potential drawbacks based on you and your individual circumstances.
Lack of space
While it sounds obvious, many people don’t realise how much furniture and items they actually have prior to downsizing, which brings its own challenges. It’s always recommended to do a thorough inventory of what you have before you downsize and ensure you either have sufficient storage, external storage options or you’re willing to get rid of some things to make it work.
Likewise, if you enjoy hosting, a smaller house means less guests, although this may end up being a benefit for some buyers.
Sentimental reasons
Moving home is one of the most stressful things we can do and many people find downsizing emotionally difficult, especially at a later age or if you’re leaving a family home that’s been lived in for many years.
Research by Homeowners Alliance shows that out of a survey of homeowners aged 55 or over that cancelled a planned move, nearly half of them cited the stress of moving, while 23% didn’t want to leave their local community.
Moving costs such as Stamp Duty
Many people avoid downsizing due to the additional moving costs that come with it, including factors such as estate agent fees, conveyancing fees and Stamp Duty Land Tax (SDLT). Whilst Stamp Duty costs is a common reason many people avoid downsizing, it should be noted that recent changes to SDLT have made it much more accessible, particularly if you’re downsizing to a less expensive property.
Since many people use the proceeds of their sale to buy outright, there’s generally less need for a deposit or a mortgage but if you do find yourself opting to downsize with a Shared Ownership property, for example, this can offer more savings that offset any additional associated costs.
