What downsizing could cost you - and what to do with your money once you've sold

Downsizing is often seen as a move to having a simpler life, but it comes with its own sets of challenges.

Recent analysis by Savills found there were 131,200 downsizers in 2025-26 with £462,500 being the average price of the homes they sold and £304,150 being the average purchase price of their new home.

Some people downsize into retirement homes, others are empty nesters, and other factors – such as divorce – can play a part too.

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There are other factors too. Phil Spencer, property expert and founder of property tips website Move iQ, said he was seeing a steady flow of “urban returners”.