2015 is predicted to be the year of the downsizer with the latest research from Lloyds Bank indicating that over half of homeowners (52%) plan to sell their property over the next three years in order to buy a smaller home.

As the wave of downsizing sweeps Britain, homeowners are driven by different motives. The majority (40%) of people are aiming to reduce bills and outgoings, while 28% hope to release equity. Three in four people expect to make money when they downsize.

Lloyds has found that moving from a detached family home to a bungalow frees up an average of £103,715; an 8% rise from £95,634 in 2000. Meanwhile, the average gains from moving from a detached house to a semi increased by 6%, from £114,744 to as much as £121,686.

Many sellers are in a position where their children have flown the nest, whilst some simply no longer require as much space. Often downsizers use their released funds to enjoy during their retirement on things like holidays. Lloyds report one in ten people will use the cash to boost their pension fund, while 13% will use the money to help out family members.

George Burnand of Strutt & Parker’s Winchester office says: “People’s homes are usually their most valuable asset and the financial benefit of downsizing can be very appealing. Downsizers have become an increasingly important sector of today’s market, freeing up larger properties for those making their way up the ladder.

“One of the most important things to remember when taking this leap is to genuinely downsize and not buy a home ‘slightly smaller’. You are not going to fit all your furniture and belongings into your new home, so aim to work out which highly prized items to keep even before your house is on the open market. By keeping only your favourite belongings and removing unwanted clutter, the move will be more emotionally manageable, and potential buyers who come to view your current home will be able to see the space in a much better light.”

George continues: “Where you choose to move to is also crucial. Choose somewhere accessible to relatives but not too close; you don’t want to be the babysitter every weekend! Select a house where everything works to avoid using the money you have just freed up on expensive maintenance. Pick a village with plenty of services nearby, a good community feel and neighbours who can keep an eye on the house – a ‘lock up and leave’ will be essential when you have more time on your hands to travel.”

He concludes “With my parents having just gone through the process I have first-hand experience of the dos and don’ts!”

Contact Strutt & Parker on 01962 869999.