Fifteen per cent of UK homeowners are planning to downsize during the current five-year parliamentary session, new research from Suffolk Building Society has indicated.

This would equate 6.3 million adults in the UK, based on figures from the Office for National Statistics.

Suffolk Building Society said that current house prices and mortgage rates, as well as increased living costs, are contributing to the trend. With UK homes costing an average of 8.5 times the average earnings, the society suggested that people may be considering downsizing not only to free up money for themselves, but also to help younger family members get on the property ladder.

The society’s research, based on a sample of 2,166 UK adults, also revealed a regional divide in those expected to downsize soon, with one in ten (10%) of those in the North contemplating this, compared to 14% of those in the South. In London, the figure was 25%, likely due to housing prices and cost of living increases.

“Not every downsizer needs a mortgage, but an increasing number do, due to the rising cost of living and current property prices,” commented head of intermediaries at Suffolk Building Society, Charlotte Grimshaw.

“For some, it’s a repayment vehicle for an existing interest only mortgage that’s come to the end of its term. Therefore, it’s an important conversation for brokers to be having with their clients.

“Encouraging homeowners to think about downsizing earlier rather than later means they’re well prepared to move at a time that suits them – or enjoy the cash they may free up from it. Being aware of all options of homeownership, including downsizing, means that people can make informed decisions in a timely manner and consider just what the right option for them looks like.”

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