A guide to moving into a smaller home

A guide to moving into a smaller home

‘Downsizing’ means moving into a smaller property that is more suitable to your lifestyle, age or particular circumstances. Maybe you don’t need those extra bedrooms, or the costs of heating a family house that only one or two people now live in. Perhaps you want to travel more, or be closer to grandchildren.

In our step-by-step guide to downsizing, you’ll get all the key information and practical advice about the downsizing process:

• Why you are downsizing
• Fixing your downsizing budget
• Researching what kind of home you need
• Knowing how much space you’ll have when you downsize
• Decluttering with discipline
• Knowing if you can afford to downsize

Reasons for downsizing

Is now the right time to downsize my home?

Why do you want to move to a smaller property? Common reasons for downsizing are when grown-up children have left home, planning for retirement, and feeling that you no longer need the extra bedrooms and living space.

Financial benefits of downsizing

If you’re approaching retirement, you might want to free up the equity you have in a larger family house. The extra money released by downsizing could pay for an unexpected life event, a family wedding or even a dream holiday. A change in financial circumstances, new job, the end of a relationship or family issues might mean moving to a smaller home in a different location is the best solution for you.

Downsizing for a smaller carbon footprint

You could be downsizing for environmental reasons – a smaller property will have lower energy bills and you’ll be reducing your carbon footprint. You might also have the opportunity to install a green energy heating system in a smaller property, and live more sustainably.

Simplifying life and reducing stress

It could just be a case of no longer wanting the responsibility or stress of looking after a larger property. Reducing the cost of living, mortgage payments or general household costs – these all might be factors behind downsizing.

Everyone has their own reasons – just make sure you’re comfortable with the decision to downsize.

How to downsize successfully

Decluttering

You’ll probably have no choice but to declutter! Decide what to keep, sell, recycle or discard in each room. This is often an emotional process for people, because of the personal associations and memories associated with certain items, so it’s important to be disciplined about what to keep and what to let go.

Maximising small spaces

Take measurements in the property you are buying so you know exactly how much space there is, and the difference with your existing home. You’ll then have a better idea of how much of your furniture and possessions you can take with you.

Selling, donating and recycling unwanted items

You can also donate large items of furniture to charity shops, or arrange to have them collected by your local council, or cash in using sites like eBay or Facebook Marketplace. Hiring a skip for clearing gardens, garages or attics will save on repeated trips to the recycling centre.

Packing and moving efficiently

Book your removal company in good time and ask if they will include packing your items as well. This will increase the costs but can save you a significant amount of time, stress and labour.

Start your property search

Once you have made the decision to move to a smaller property you can start to arrange viewings and prepare to sell your existing home. At haart we can help with both the selling and buying process.

Choosing the right home for downsizing

Assessing needs and priorities

What do you need in your new home? There could be health reasons why you have to downsize – moving to a property more suited to your age and mobility. Assessing what’s important about your lifestyle and what is dictating your move can really help you choose the type and layout of your property.

Researching different housing options

Many people just think of downsizing as moving to a bungalow, flat or maisonette. That isn’t necessarily the case – if you still want outdoor space and lead an active family life, you might prefer a semi-detached or terraced house, big enough to entertain guests and with a garden, but easier to maintain.

Considering location and amenities

If you are relocating to a new area, make sure you are aware of the transport links and local amenities. Are there shops, schools, GP practices and other services close by? If you are moving to be nearer an elderly relative or family member, are there good road and rail links?

Budgeting for a downsized home

What’s your budget? Try and make this realistically match up with your expectations in terms of the number of bedrooms and bathrooms, living space, outside space and layout, and your requirements for the property. You may be moving to an area where smaller properties are the same price or more than your current one: stamp duty, conveyancing, moving costs, and repairs must all be considered.

However, you’ll be saving on furniture and amenities with less space in the new property.

Downsizing and relocating

Moving out of town or to a new city

It’s a big adjustment, relocating to a new area, especially if you’re moving from the countryside to a town or city, or vice-versa. If it’s possible, visit the area a few times ahead of your move, and get to know the environment.

Transitioning to a new community and making connections

After your move, keep in touch with your old friends, but give yourself time to become part of your new community. It will take time to feel like a local, whether you have moved to a city or to a quieter area. Towns and cities can feel overwhelming at first, while it might be more challenging in rural areas to find the immediate opportunities to meet new people.

Downsizing & Stamp Duty

Stamp Duty is a tax that you pay if you buy a property over a certain price in England and Northern Ireland. The stamp duty rules are different for Scotland and Wales. There are exemptions for first time buyers in England and Northern Ireland, who don’t have to pay stamp duty on property purchases under £300,000.

If you are downsizing and buying a property, you will have to pay the standard rates of stamp duty, which in England and Northern Ireland are:

So while you will still be paying stamp duty, you could pay less by downsizing.

Alternatives to downsizing

This only really applies if you want to keep the space you have but make better use of it:

Renovation

Changing the size or shape of a room in your home can open it up to new possibilities. You could create a home office or use a bedroom as a walk-in-wardrobe.

Renting out rooms

You could rent a spare room to students or short-term tenants to bring in some extra money. Under the government’s Rent a Room scheme, you can earn up to £7,500 per year tax free for renting out a furnished room. However, you must check the terms of your mortgage before doing this as it’s not always possible.

Cost of downsizing

Having a budget for downsizing is important, so ask yourself the following questions when you’re doing the sums:

• Will your new mortgage be affordable?
• How much will the household bills be?
• Are there future plans to renovate or extend the property?
• Does the property need work or changes made and how much is that likely to cost?
• Will it have a good resale value?
• Would it be a cheaper option to renovate your existing property or rent out rooms?

haart is on a mission to get you moved

haart has plenty of advice on our site, from a complete guide to the cost of buying to tips for buyers. If you want help downsizing, come to haart.

haart can market your current property using our unique blend of expert staff and technology, then help you find a new one with our expertise in local areas. Get in touch today and see how we can help you.

Frequently asked questions

What is the best age to downsize?

People often downsize when their children leave home, or when they retire. There is no preferred age to downsize, however – it will depend on individual circumstances.

How much does it cost to downsize a house?

This will vary from person to person. The costs include removals, stamp duty, conveyancing fees, and any repairs or renovations.

What is the difference between downsizing and decluttering?

Downsizing is moving to a smaller property, whereas decluttering is reducing possessions. Downsizing often involves decluttering.

What is the difference between downsizing and rightsizing?

Downsizing means moving to a smaller home. ‘Rightsizing’ focuses more on finding a home suited to lifestyle or circumstances.

Are there alternatives to downsizing?

Options include remortgaging, renting a room, extending your mortgage term, or adapting your current home.

How long does it take to adjust to moving?

It may take weeks, months or even years to fully settle into a new community.