Thinking of downsizing? What to know before you take the plunge
Selling up and downsizing is a massive decision. But is it the right one for you? We explain the benefits and pitfalls.
Getty
Selling up and downsizing is a massive decision. But is it the right one for you? We explain the benefits and pitfalls.
Downsizing can be both a practical choice and an emotional journey. For many, the upsides are saving money on bills and house maintenance, freeing up equity to better enjoy retirement or moving into a home that better suits changing needs.
But while the idea of a smaller, more manageable property sounds appealing, it’s not always as straightforward as it seems.
Lisabel Miles, housing policy manager at Age UK, has worked with countless homeowners navigating this process. She stresses that while downsizing can bring real benefits, it’s vital to think carefully before making the move.
“People often underestimate how emotionally attached they are to their home,” says Miles. “It’s not just a property – it’s the place where you’ve raised a family, built memories, and lived your life. Leaving that behind can be a huge decision.”
Alison Ortiz, head of product at Saga Money, adds: “Downsizing isn’t just a financial decision – it’s an emotional one, especially if you’ve lived in your home for decades. Leaving behind memories can feel hard, so take time to think about what matters most.
"If the idea of less stress and more freedom excites you, you’re probably ready for the change.”
“People sometimes focus just on the property,” says Miles. “But being closer to friends, family, shops or healthcare services can make daily life much easier. The right location can be just as important as the right home.”
She adds: “Community becomes more important as you age, because you’re spending more time at home and may need support nearby – whether that’s someone dropping off food if you’re ill, or simply keeping an eye out for you.
“If you already have strong ties where you live, that’s a serious reason to stay put. But if not, moving somewhere with a better sense of community can be life-changing.”
The key, says Miles, is being proactive. “That might mean volunteering, joining local groups, or simply getting to know your neighbours. You’re lucky if you find a community that works passively, but often you have to put energy in yourself.
“And for some, long familiarity with a home also matters – especially if there are memory issues or cognitive decline. Knowing instinctively where the loo is, or how to navigate the layout without thinking, can be hugely reassuring.”
The first step is to be realistic about what you need from your next home. Downsizing isn’t only about square footage – it’s also about suitability for the years to come.
“When you’re looking for somewhere new, think about the future,” Miles advises. “That might mean step-free access to the property or being close to local amenities.
“What if you couldn’t drive – is there a bus stop nearby? If you were unwell, could you live downstairs or is there at least a downstairs loo?
"How easy would it be to get shopping into the house if carrying became difficult? It’s really about anticipating those scenarios before they happen.”
Renovating also requires thought. “Getting in and out of a bath may become difficult, so you might be better off with a walk-in shower – and make sure the walls are sturdy enough to fit a grab rail if you need one later.
“Stairs can be great for fitness, but not every staircase is suitable for a stair lift, so it’s worth checking the configuration. The idea is to choose a home you can adapt to, so it continues to work as your needs change.”
Miles also cautions against cutting too far when downsizing. “You might want to go from three bedrooms to two, but most people don’t want to go from two to one.
"If you’re unwell and need someone to stay over, if you’re a couple who need to sleep separately for health reasons, or you just want space for friends and family – that extra bedroom can make a big difference.”
One of the biggest regrets that Miles hears is about the timing of their downsize. “We do find people say, ‘I wish I’d done this earlier, when I had the energy to make the decisions myself’,” she explains. “If you wait until you’re forced to move, it can be much more stressful.”
Financial expert Martin Lewis says the same thing. “I cannot tell you how many people in their early 60s come to me and say, ‘We’ll downsize before we’re 70.’ By their late 60s it’s, ‘We’ll do it in three years.’ Then in their early 70s they say, ‘Too late, we should have done it sooner’.
“Don’t leave it until you’re too old to move,” Lewis warns.
Even if you’re not quite ready, it’s worth starting to think about your long-term options. That way, if circumstances change, you’ll already have an idea of what might suit you.
Ortiz says: “The right time to downsize is when your home no longer matches your lifestyle. Fewer people in the house, rising upkeep costs, or a desire for a simpler lifestyle are all signs it’s time to make the move.
"Downsizing can free up money for retirement, reduce stress and give you more time for the things you enjoy, so don’t wait until it feels overwhelming.”
There are financial aspects to consider too, so it pays to seek professional advice. If you're still paying off your mortgage, Ortiz says, that doesn't need to be a barrier.
“Having a mortgage doesn’t stop you from downsizing – it just means your sale proceeds will first clear the remaining balance. Any equity left after paying off the mortgage can go toward your new home, boosting your retirement savings or other financial goals. It’s worth checking early what your redemption figure will be so you can plan confidently.”
Whilst downsizing might sound like it’s going to save you money, don’t forget to budget for all the costs involved in downsizing. Ortiz explains: “Legal fees, estate agent charges, moving costs, and any renovations or repairs can quickly add up. Budgeting for these upfront means you’ll know how much you’re really freeing up for your future.”
And if you have freed up some cash as a result of downsizing and are not sure what to do with it, what are the things you should consider? “Extra cash from downsizing is a great opportunity,” says Ortiz, “but it needs a plan. Think about clearing any debts, boosting your retirement savings, or investing for long-term growth.
"Start by listing your priorities and exploring options that align with your future goals.”
There’s been a lot said in the media of late about empty nesters holding on to property “It might surprise people to know just how many older people do move,” says Miles.
“Around 60% of people aged 85 say they’ve moved since the age of 50, and even among 75-year-olds the figure is about 50%. There’s sometimes an assumption that older people aren’t moving in big enough numbers, but in reality, plenty are.”
“We also sometimes overestimate the size of homes people live in,” she adds. The reality is that 80% of people already live in homes with three bedrooms or fewer.”
Practicalities aside, downsizing has a significant emotional element. Sorting through decades of belongings can be overwhelming, particularly if you are holding onto the possessions of deceased loved ones.
“People sometimes tell me it’s like opening a time capsule,” says Miles. “You come across things you’d forgotten about, and that can be incredibly emotional. It’s important to allow yourself time and not feel rushed.”
Some find it helpful to tackle one room at a time or to enlist the help of family and friends. Deciding what to keep, donate, or sell can be a cathartic process – but it takes patience.
If you have lots of paperwork to declutter, read the expert guide from Saga Money on the best way to clear out paperwork, and what you need to keep.
“Downsizing can feel like a big step,” says Karen Powell, professional organiser and founder of The Organising Lady. “Just remember that a smaller home doesn’t have to mean ‘less living’; it can mean more freedom.
“Letting go of the clutter, keeping the treasures and enjoying the fresh start you deserve.”
These are Powell’s tips for success:
“Furniture decisions have the biggest impact,” says Powell. “The key here is to consider what fits the way you want to live now. If you no longer host huge family gatherings, you don’t need a giant dining table.
“Measure your new rooms and ask yourself (honestly and realistically) will that oversized sofa or heavy wardrobe actually fit? If not, think smaller or multifunctional, like a sofa bed or slimline dining set.”
“Try grouping things into four piles: essentials you use often; items you love; duplicates; and ‘just in case’. Keep the best versions and let go of the rest,” suggests Powell.
“If time is short, prioritise bulky items first – furniture, appliances, anything that takes up space. Sentimental items can wait until the essentials are sorted.
Have a plan – it keeps the process manageable. If you find the idea of this daunting you can work with a professional organiser, like me!
“Ask yourself these quick questions: Does this fit my new home? Do I use it? Would I buy it again today? Simple prompts can help cut through indecision.”
“Letting go isn’t just physical, it's emotional, too,” says Powell. “Involve supportive friends or family if it helps, but keep final decisions your own. You’re not letting go of memories, you’re making space for the next chapter.”
“When it comes to loved ones’ items, keep one or two pieces that mean the most. This can be the hardest part. Remember things don’t define that person and holding onto everything isn’t the same as holding the person…
“I understand the feeling as I struggled when I lost my own mum. Sometimes it is really helpful to have someone who is independent to help you process your thoughts and feelings.
“Most people discover that downsizing feels lighter once it’s done,” Powell concludes. “With fewer possessions and a space that truly fits your lifestyle, you gain more time and energy for the things you love.”
If you are considering downsizing, it’s worth making sure you have all the information you need before you take the plunge.
The experts at Saga Money have produced a guide to all the costs involved in downsizing, as well as a guide to whether downsizing is the right move for you, and whether you can cut an inheritance tax bill by downsizing.
Provided by Tembo
Find out all you want to know about mortgages with expert advice.
Enjoy the freedom to withdraw your savings at any time.
