Downsizing to a Smaller Home; A Quick Guide
When you buy a new home from Barratt, rest assured that smaller doesn't mean compromising on quality. We make it easy and convenient to downsize – read below to find out why now’s a great time to do it.
Why now's a good time to make your move
The demand for property in the UK continues to outstrip supply. The average house in Britain is worth just under £230,000.* 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.
No capital gains tax to pay
Most people downsizing from a larger, more expensive property to a smaller, less expensive one are 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 as you see fit.
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.
Real peace of mind in your new home
A smaller home doesn’t mean lower quality. We offer an extensive range of beautiful homes in great locations with amenities to match, so you can be sure to find a home that suits you. And as an added benefit, if you reserve early you could tailor it to suit your own personal style and specification. You have the option to choose everything from bathroom finishes and fittings, kitchen cupboards and appliances, flooring and wardrobes to tiles and lighting.**
This means that you don’t have to compromise on quality when you downsize to a Barratt home.
Some pitfalls of downsizing includes potentially losing space and amenities that you're used to, unexpected costs with moving such as legal fees, survey costs, and choosing a smaller home that is unsuitable for future needs.
If you are selling your current home and purchasing a new smaller one when downsizing, you may still have to pay stamp duty, depending on the value of the property you are buying. Most people downsizing to a less expensive property are exempt from capital gains tax, meaning all the equity that is released by downsizing your home is tax-free.
When downsizing, it's important to avoid rushing into a decision, underestimating the true cost of moving, and ignoring potential health and mobility needs that may require certain amenities or features in your new home.
Benefits of downsizing to a smaller house can include lower maintenance and utility costs, a simpler and more manageable living space, the potential for increased financial flexibility, and potentially living in a location that better suits your needs or lifestyle.
Our Offers to Help Get You Moving
Help to Sell
Low Deposit Offers
NB: Barratt Homes does not offer financial or legal advice. We would recommend that customers take financial advice specific to their circumstances before taking any action.
** Upgrades are subject to additional cost and build stage.