The report also highlighted that the average amount gained by those wishing to move from a detached property to a bungalow can be as much as £103,715, a rise of 8% over the last 10 years.
Downsizing from a detached to a semi detached, according to Lloyds data, gained you an average of £121,686 last year, 6% or £6,943 more than in 2004.
As you would expect, it is those in the capital who stand to make the biggest gains, with totals on average reaching almost £289,927 when trading down from a detached home to a bungalow.
Moving to a bungalow from a detached property in East Anglia saw the largest average increase of 38%, closely followed by the South West on 32% and Northern Ireland on 29% or £11,477.
Those moving from a detached home to a semi in the South West saw the largest overall increase in the average amount that could be made over the past decade, at 18% (or £19,707), followed by the North (15% or £37,367). London is again at the bottom of the table for the changes over ten years, with a 12% reduction, equivalent to £32,014 less, despite the windfall still being the highest in 2014 at £237,614.
According to the report, 43% of downsizers claimed they will will reinvest their money in a new property, 26% said they planned to invest in other financial products. 13% would invest in their pension or give to members of their family. 26% are planning to move to a more affordable area, a drop of 5% compared to 2013.
63% said one of the main reasons for downsizing is to find a smaller property that better suits their current circumstances. 28% of downsizers are also looking to release equity from their property, and a quarter (25%) are looking to help support their retirement plans.
Andy Hulme, Mortgages Director at Lloyds Bank, comments: “Downsizing is clearly still a major part of the housing market with over half of potential homemovers considering a smaller property. The volume of downsizers is therefore helping to keep the market moving, freeing up larger properties for those making their way up the ladder. Once people do look to trade down, the benefits are clear. Downsizing can generate significant amounts of money, on average over £100,000 in 2014. It also helps to lower the cost of household bills and frees up funds so that people can enjoy their retirement or invest their money for the future.”
