Fewer than one in five people expect to move to a smaller home in retirement, according to new research highlighting strong emotional and financial barriers to downsizing.
Just 19% of people say they would consider downsizing their home in retirement, while almost half, 48%, say they would not, with the remainder unsure, a survey for Hargreaves Lansdown has found.
The research, based on a poll of 1,500 people conducted by Opinium in October 2025, also shows that appetite for downsizing falls with age. Only 14% of those aged 55 and over would consider the option, compared with 23% of those aged 18 to 34.
Asked why they would not downsize, more than a third, 37%, said they did not want to move anywhere smaller, while a further third said they were too attached to their current home.
Cost was also a significant deterrent, with 21% saying it was too expensive to move and 8% citing stamp duty. A further 7% believed they would not raise enough money from a sale to make moving worthwhile.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Downsizing may seem like a neat solution to your retirement challenges – you may not have saved as much as you’d hoped, and the extra cash released by a move to a smaller home could neatly fill the gap. Added to this, the children have left the nest and you may feel you no longer need the space.
“However, a closer look shows that for many the downsizing dream does not match up to reality – less than one in five of us would consider moving, with people becoming more reluctant the older they get.
“There are various reasons for this, most notably 37% said they didn’t want to move anywhere smaller. This could be because the children who have left may have been replaced by grandchildren who visit regularly.
“It may be that they’ve had a chance to look around properties, and realise it’s not just about the number of bedrooms: they’ve also become accustomed to bigger living spaces attached to larger homes, and aren’t keen on the compromises they’d have to make.
“Added to this, a third of people said they are very attached to their home so wouldn’t consider a sale. This is understandable, given that people may have brought up their family there and will be reluctant to move away from an area where they have friends and connections.”
Morrissey added that upcoming tax changes could prompt more homeowners to reassess their options. “There are reasons why downsizing could be on more people’s minds in the coming year. The inclusion of pensions in people’s estates for inheritance tax purposes from April 2027 will bring many more estates into the taxpaying net.
“It could prompt people to consider downsizing so they can give away the lump sums raised to loved ones sooner rather than later, to reduce the value of their estate. It’s a decision that requires careful thought.”
Morrissey said equity release was another option for some homeowners, but warned it carried risks. “Equity release is another option, as you can release money from your home without having to sell, and can be gifted to loved ones and reduce the value of your estate.
“However, this isn’t the cheapest of options, and you and your loved ones will need to be aware that interest will accrue over time and will need to be repaid either when you die or go into a home.”
