Market analysis
Is now a good time to be considering downsizing in the current property market?
Downsizing: is now a good time?
Sometimes we can take the space we have at home for granted. We see a house fairly empty, and it can seem as though we are somewhat rattling around in it. Moving to a less expensive home and ultimately smaller home can be a great way to free up some money – but sometimes it isn't all as it seems. That being said, is now a good time to thinking about downsizing?
What to think about first
It is impossible to reverse a move once you have committed and exchanged, so considering all your personal circumstances is a strong first move to make. How would a move to downsize affect you? This is something to really think about, because moving in general is a costly and lengthy process.
The increase of property prices
With house prices UK wide soaring in recent years, many people are questioning when the right time to move could be. This can be difficult to answer on a personal level, but what we can offer you is the chance to reflect and give yourself an insight to your own finances. It isn't as simple as purchasing a smaller home, because it costs to move. In fact 2022 alone has seen that cost be well over £8,000.
You may even think that downsizing equates to a cheaper property, but that can be far from the truth, as we know the cost of living is pushing even smaller houses up. You may need to ask yourself if you will really be making the saving you think you will by buying a smaller house.
Maximum prices and high demand
Houses entering the market are being sold for their maximum price. With competition to buy and own a property, the demand is outstripping the supply. We don't expect this to be the case forever, but as it stands, some houses are being sold before launching to the portals OnTheMarket, Rightmove & Zoopla to buyers already registered with us.
Move for the right reasons
We like the phrase, 'always move into a home – not out of one.' Downsizing shouldn't always be to free up some money. It's important to look at how your new home will improve your life in terms of location, lifestyle, your social circle, amenities, activities and family connections. What are your reasons?
Downsizing tips
What are you leaving? – Downsizing and potentially relocating can mean starting again. The friends and networks you have built over the years and your current location that is known like the back of your hand would all change. Does downsizing mean a totally new location for you? If so, these are points to consider.
Declutter – There is a moderate chance you have years, possibly decades worth of memories in your family home. Is trying to squeeze them into a new and smaller property going to be beneficial or even attainable? Likely not. Encourage yourself and those you live with to keep the things that are precious and consider a house clearance if you really need to. This can be difficult to think about, but crucial in downsizing.
Think positively – Downsizing can often be looked at as giving away something you once had and taking a property akin to a pay-cut. This shouldn't be viewed this way. There are a plethora of reasons why it makes sense to own less space. If you are retiring, consider it an adventure. You'll be looking at houses or flats with less maintenance, freeing up your time to use wisely and in your own way.
Whatever your choices are, you can always reach out to a financial advisor who will be great in discussing all your options and consider both your personal and financial circumstances objectively.
If we can offer you more advice, or if you would like to consider speaking to us about downsizing, please get in touch.
