Downsizing can be a positive move for many reasons, whether you’re an empty nester or looking for a more minimal home set-up, but it’s a transition that requires plenty of planning before you make the move. From determining what you’ll keep and get rid of, to knowing what your next home needs to look like, there’s a lot to think about. If you’re considering a downsize, this guide will walk you through the process and how you can do so effectively, from storing your belongings to finding your next property.
What benefits does downsizing offer?
There are many reasons to downsize, starting with the opportunity to release equity from your home. If the property market is performing well, you can potentially make a profit on your existing home and buy a smaller, less expensive one to free up extra cash. That money can then be used to fund a once-in-a-lifetime trip, help your kids get on the property ladder, or fund your retirement.
Another reason to downsize is to lower your monthly bills. The larger the home, the more you’re likely to pay for gas, electricity, and water, so downsizing can save you money on these utilities. A smaller house is also easier to maintain, which is perfect if you’re deciding to retire there, as larger properties can be harder to manage as you get older.
Downsizing gives you the freedom to move to a different location, which you may want to do to live closer to your children, grandchildren, or other relatives. You may also currently live in a more rural area and want to move to a town or city where you’ll have access to more amenities or transport connections.
How much does downsizing cost?
Taking the decision to downsize may be a way to boost your cash, but it could also cost you. The most significant expense is stamp duty, which determines if downsizing is feasible for you. Any property over £250,000 has stamp duty applied to it, so bear this in mind when buying a new home.
Estate agent fees are another cost, typically ranging from 1 to 3% in commission, as well as conveyancing fees that cover the expenses associated with the legal and administrative work involved in your sale and purchase. Some mortgages will come with fees if you pay them off early, so it’s important to look into the terms of your deal to understand how much you’ll pay here.
Once you’ve put your home on the market and started your property search, you’ll need to pay for an Energy Performance Certificate to provide to your buyer, as well as a property survey on your chosen home. There may be maintenance and improvement costs associated with your next property, or those that you’ve been asked to cover by your buyer, to progress the sale.
Finally, there’s the process of packing and actually moving out of your home. Packing costs can range from £600 to well over £1000, depending on how much and how far you’re moving, and if you’ve sold your home without finding your next place, you will also need to factor in rental costs. The associated expenses will include the monthly rent, your damage deposit, council tax fees and home content insurance, all of which will vary depending on whether you’re moving to the heart of a major city or the outskirts.
How to start downsizing
Downsizing means taking stock of what you own and what you need, since you won’t have as much space as you’re used to. Take your time with this process and start early, as packing always takes longer than you imagine. Start decluttering as soon as you’ve made the choice to put your home on the market (this will also make your current home appear larger, which will go in your favour when potential buyers view it).
Make three piles of your belongings—what you want to donate or recycle, what you want to take with you, and what you want to store. Since the process can be overwhelming, tackle one room at a time to make the process feel more manageable.
For example, if you’re sorting through your bedroom, begin by emptying your wardrobe and organising that before moving on to the next cupboard or shelf. Just be careful not to discard any important items that won’t be easy to replace, such as your insurance policies, medical records, marriage license, and birth certificates.
Finally, be realistic about the amount of space you’ll have in your new place and what you truly need to keep. You may have a lot of items, such as plates and bowls, bedding, or chairs, currently, but will you need as many when you move?
While there are costs and challenges involved in moving to a smaller property, a well-thought-out strategy—from decluttering your belongings to budgeting for your next move—can make the transition smoother and more manageable. Downsizing doesn’t have to be complicated, but you do need to do thorough research beforehand to decide if it’s the right choice for you.
A reputable moving provider like PICK&MOVE will ensure the process is easier and hassle-free, providing home removal and storage solutions to suit your needs.
