Property values continue to rise
The demand for property in the UK continues to outstrip supply. The average house in Britain will be worth £220,000 this year - up £9,000 on 2016.1 Whether you want to release equity, pay off your mortgage, reduce your bills, fund your retirement, change your lifestyle or buy another property, downsizing now could ensure you maximise the value that you release from your home.
Take at look at our handy Home Buying Guide for help navigating the home-buying process.
No capital gains tax to pay
For most people downsizing from a larger, more expensive property to a smaller, less expensive one is exempt from capital gains tax if it is your main residence. That means all the equity that is released by downsizing your home is tax-free and can be used to do what you want with.
Downsizing as investment
If your main reason for downsizing is to plan for your retirement and to make an investment to help finance it, you may want to use the proceeds of the sale of your current home to buy two properties – one to live in and one to provide an income and to act as an investment.