A growing number of homeowners are planning to downsize, according to new research from Suffolk Building Society, with 15% of homeowners across the UK considering such a move during the current five-year parliamentary session.
The findings highlight a notable North–South divide, with just 10% of homeowners in the North thinking about downsizing compared to 14% in the South. In London, the proportion rises significantly to 25%, a trend likely driven by high property values and the rising cost of living in the capital.
Suffolk Building Society estimates this national trend could represent around 6.3 million adults seeking smaller or more affordable homes. While the concept of downsizing is not new—often used to release equity, reduce maintenance, or increase disposable income—the lender says the pressures of high mortgage rates, house prices, and general living costs are now bringing the issue to the fore for many households.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “Not every downsizer needs a mortgage, but an increasing number do, due to the rising cost of living and current property prices. 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.”
She added that encouraging clients to consider their options earlier can help ensure they are financially and practically ready to downsize when the time is right. “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,” she said.
Grimshaw also pointed to the potential benefit for the wider housing market if more people choose to move to smaller properties. “Downsizing could also help to free up some of the UK’s housing stock and create momentum in the market for buyers, with larger houses becoming available for growing families. Over time, this may make it easier for more people to get onto the property ladder, as housing stock becomes available at the lower end.”
With average house prices now standing at 8.5 times the average UK salary, many homeowners may be looking to unlock capital to help younger family members into the housing market. Suffolk Building Society is calling for a wider policy focus on the issue, alongside longer-term efforts to increase housing supply.
“In setting out targets for new home construction, the government clearly acknowledges the UK’s housing crisis,” said Grimshaw.
“Certainly, more homes are needed to meet demand. But we’d also welcome some shorter-term policies, such as encouraging downsizing, to get the housing market moving across existing housing stock, while the building sector gears up to meet the challenge.”
