Why the young are more likely to downsize home

Downsizing is often seen as the prerogative of older homeowners, leaving a bigger family home in their later years for something more suitable.

However, new research has revealed that the UK’s young people are four times more likely to move into a smaller property than the over 55s.

Investment managers Hargreaves Lansdown quizzed 2,000 people across the UK to find out their moving intentions, talking to both homeowners and renters.

Part of a plan

Reflecting a difficult property market for younger people, the study revealed that those aged between 18 and 34 were more likely to downsize than move up the property ladder.

Some renters downsizing were doing so as part of a longer-term plan to save for a deposit to by their own home, according to the research.

Leeds was the “capital of downsizing” said Hargreaves Lansdown with one in six people intending to move to a smaller home.

One in eight Edinburgh residents have the same plan with 10 percent of those who live in Brighton looking to downsize.

Squeezed out

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “Generation rent is being squeezed out of the property market and crammed into smaller and smaller homes.

“As rents rise, tenants may be forced to keep downsizing in order to keep a lid on costs, especially if they’re simultaneously trying to save for a home themselves.”