Supersize your cash

More of us are downsizing to cut bills, have a more manageable property and boost our retirement coffers, says Yours money editor Sarah Jagger

Downsizing works best if you move to a cheaper property and area but keep friends and family nearby

More than half of homeowners plan to move to a smaller property within the next three years. Downsizing from a detached house to a semi typically frees up £115,970. And moving from a detached house to a bungalow – the most common downsizing plan – brings in around £97,607, according to Lloyds Bank research. The main reason we downsize is to have a more manageable home and to reduce our outgoings. Others want to free up funds for retirement or invest money for the future. Downsizing works best if you move to a cheaper property and area. But don’t forget to budget for the average £12,000 moving costs, and when you’re making decisions about where to move, don’t overlook the value of having friends and family nearby. Do your research – bungalows and retirement flats aren’t necessarily a cheap option because they are in such high demand. One of the biggest challenges is deciding which possessions to part with. Try to start sorting through your belongings three months before your move, doing a little every day and tackle one cupboard or drawer at a time to make it more manageable. Make some extra cash by selling items that you no longer need or won’t fit in your new home. Try local auctions and sites such as eBay. The British Heart Foundation also offers a house clearing service with profits from the sale of any items going back to the charity. With your downsizing windfall, save some in an emergency Cash ISA and use the remainder for longerterm savings. Then invest in a stocks and shares ISA, boost your pension, or both. Take the opportunity to get yourself on track for retirement, so you can enjoy the lifestyle you wish to have.