Struggling with bills? Time to sell your home

More than two fifths of people who sell their home to move to a smaller one do so to help reduce their bills.

New research published today by Lloyds Bank shows that downsizing is a strong driver of property sales, with almost half of homeowners planning to sell their property in the next three years saying they'd like to downsize.

With more people looking to downsize to cut the costs of bills, the average age of people doing so is falling. It now stands at just 40 years old, with a quarter of potential downsizers aged just 26-35.

Traditionally downsizing has been the preserve of retired folk, looking to free up cash to fund their fun in their golden years, More than a third of potential downsizers –37 per cent – say they want to move to a smaller property to support their retirement plans.

It can be an attractive option. The potential amount that can be raised by downsizing from a detached property to a bungalow has risen by 12 per cent over the past decade, from £87,501 in 2003 to £97,722 today.

Downsizers in London stand to make the most in monetary terms, with those trading down from a detached to a bungalow in the capital set to pocket an average of almost £272,000.

Marc Page, mortgages director at Lloyds, said: "More families view downsizing as a way to lower their bills, help out their children or free up funds for retirement.

"However, selling a home is not a decision to be taken lightly."