In England and Wales, a remarkable milestone has been reached, with more than 8.1 million owner occupiers now proudly holding the keys to their homes, free and clear. This impressive figure accounts for a significant 52% of all owner occupiers, and astonishingly, it climbs to over 90% when considering those aged 65 or older.
Drawing insights from sales price data provided by the esteemed Land Registry, an intriguing opportunity arises for homeowners contemplating a change. By downsizing from a spacious 4 or more bedroom house to a cozy 2-bedroom apartment, an average windfall of over £250,000 can be unlocked. Of course, it’s important to note that the precise amount may vary depending on the region.
Beyond the undeniable financial benefits, there is a broader positive impact that arises from liberating under-occupied homes. By choosing to downsize, not only can individuals alleviate some of the pressing housing stock concerns prevailing in the market, but they can also substantially reduce their ongoing expenses. In fact, many downsizers find themselves with a substantial nest egg in the form of equity.
The potential offered by this newfound equity is truly remarkable. It opens doors to a world of possibilities, empowering individuals to embark on endeavors they may have previously deemed unattainable. For instance, launching their children onto the housing ladder becomes a tangible reality, granting them a head start in their own independent lives. Alternatively, one may opt to invest in a lucrative property or even fulfill the lifelong dream of owning a holiday home. The possibilities are as diverse as one’s imagination permits. Furthermore, let us not forget the potential to enhance one’s pension pot, providing a more secure and fulfilling future.
It is essential, however, to exercise prudence and seek the guidance of independent financial advice when navigating these exciting opportunities. With the right expertise at hand, one can make informed decisions that align with their unique circumstances and aspirations. So, whether it’s embarking on a grand adventure, securing the future for loved ones, or simply enjoying a well-deserved holiday, let the power of equity propel you toward a brighter tomorrow.
Don’t let this opportunity slip away. Take the first step today and explore the possibilities that downsizing can offer. Contact us today
Source: #Dataloft, Land Registry, MHCLG, based on sales in last 12 months, ONS, UK Finance
