Downsizing could unlock more than £300,000 – Savills

Downsizing from a four-bedroom to a two-bed in England and Wales could release more than £300,000 on average for the over 65s, according to research from Savills.

In its latest analysis, the real estate services company reveals the income older people could enjoy by moving to a smaller property, unlocking an average of £305,090.

Downsizers, Savills said, could enjoy a tax-free income of £1,218 a month for the rest of their lives, based on an average life expectancy of about 20 years for those aged 65. According to Savills, there are 1.29 million owner occupiers aged 65 and over living in a four-bedroom house.

But the research also finds that the gains as described are uneven across the country, with a “strong correlation” between a longer life expectancy and higher value housing markets.

Those downsizing in London from a four-bedroom to a two-bedroom abode stand to unlock the most equity at £2,523 a month on average. For the South East this is £1,485 a month.

Meanwhile, North East downsizers will see themselves release the least equity, at £826 per month on average.

The top ten local authorities for this equity unlocking are all in London. In Westminster, …