After the pandemic-induced ‘race for space’, downsizing seems set to be the trend of 2023, according to a new survey2 that reveals three in 10 homeowners are considering saving money by moving to a smaller property, relocating or living with others.

Smaller space, big saving

Cost-of-living difficulties are forcing many people to rethink their housing situation; six in 10 said they might consider moving to a smaller home in response to the rising cost of living, with 4% having already made the switch to meet soaring costs. In total, of those considering downsizing, more than seven in 10 cited the lower cost of living as a benefit. The research quantified the decision to downsize as a £120,820 saving for each bedroom given up.

Leaving London

Homeowners in Central London are particularly drawn to downsizing or relocating, with more than a third thinking of moving elsewhere to help their financial situation. On the other hand, Yorkshire and the Humber residents are the least likely to downsize and homeowners in North East England are the least likely to consider relocating.

Mull it over

Although the saving could be significant, the downsides to downsizing were also stated by respondents. Specifically, moving costs (39%), a lack of personal space for belongings (38%), distance from family and friends (29%) and being in an unfamiliar area (28%) need to be considered.

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2 Halifax, 2022