Time to make a savvy move
AS house prices continue to rise, experts say we are now in a “seller’s market” and this offers an opportunity for older people looking to generate extra cash in retirement by downsizing.
Empty-nesters who move into smaller and easier to manage homes could generate hundreds of thousands of pounds for their retirement. It could be an opportunity to pay off debts and reduce overheads such as energy bills, insurance and council tax.
Downsizing can also free up properties for young families keen to move up the property ladder.
While millions dream of downsizing in retirement, far fewer get round to it in practice. So do the upsides outweigh the downsides?
Pent-up demand for larger properties means it is a good time to downsize according to the research from Pensionbee. Chief executive Romi Savova said the extended stamp duty holiday makes now a tempting time to downsize: “It could release a significant sum, right across the UK, to boost your retirement fund.” Buyers are hungry for properties, with mortgage approvals in February 87,000 higher than last year, according to latest Bank of England figures. Richard Pike, sales and marketing director at property specialists Phoebus Software, said government incentives are underpinning demand and prices: “Competition from buyers makes this a seller’s market, which is pushing up prices in most areas.”