Did you know that over half (55%) of owner occupiers across England own their homes outright? House price growth means that homeowners have amassed significant amounts of equity in their homes.
Having successfully climbed the housing ladder, many homeowners are now realising the potential wealth tied up in their homes and are considering downsizing from their existing larger properties.
The Annual Retirement Confidence Index from McCarthy & Stone in 2017 revealed that 38% of over 65s would consider downsizing now, equating to around 4.5 million pensioners in the UK.
If homeowners moved from their existing 4-bedroom detached home to a 2-bedroom flat they could release, on average, just under a quarter of a million pounds. Of course, this amount varies significantly by region, from £155,000 in Wales to £466,750 in the South East of England and a whopping £815,000 in London.
These downsizers could dramatically reduce their ongoing running costs and also be left with a large pot of equity to spend on whatever they wish.
There are also added advantages to the entire property market as well as the individual homeowners. With under occupied homes at the higher end of the property market being freed up by downsizers, the pressure on housing stock will ease and hopefully increase fluidity in the UK housing market as whole.
How would you spend your equity? Perhaps you would like to continue the bank of mum and dad by helping your children purchase their first home. You could boost your retirement income, buy a small investment property or your dream holiday home. Some may even want to splash the cash on the luxury holiday of a lifetime!
If you are thinking about downsizing or are just curious to know how much your home is worth and how much equity you could release, try out our instant valuation service. Our service is free and without obligation.