2023 is shaping up to be the year of the downsizer

Recent trends in the housing market have shown a significant resurgence in downsizing, as more and more homeowners opt for properties with fewer bedrooms. Hamptons data reveals that 41% of movers are reducing their bedroom count, a considerable increase from 32% in 2022 and 33% in 2019. This spike is the highest since the estate agent began tracking these figures in 2016.

Downsizers had been relatively inactive in the property market over recent years, with factors such as Covid and low incentives to move, playing a role. However, 2023 has brought about a change, with high energy costs emerging as a key driving force behind the decision to downsize.

Additionally, with interest rates at their current levels, a growing number of younger downsizers are choosing to move to clear the final years of their mortgage. This trend is reflected in the fact that a record-breaking 71% of downsizers have paid for their new home in cash so far this year, up from 62% in 2022 and 60% in 2019.

£% SAVED

The average downsizer who bought a home with at least three fewer bedrooms saved 53% on their next purchase compared to a 24% saving for someone who only downsized by one bedroom.

The resurgence reflects a changing landscape, with high energy costs and a desire to clear mortgages playing key roles in influencing homeowners' decisions. Read the full article here, along with tables detailing research da: Downsizer purchases made with cash  |  Proportion of buyers reducing bedrooms