What the survey found

The Family Building Society survey of over-65 homeowners found that the desire to downsize is widespread — 58% said they wanted to move to a smaller or more appropriate home. But intention and action are different things: stamp duty emerged as the most commonly cited financial barrier, with just under half of those who want to rightsize naming it as a reason not to proceed.

The cost of stamp duty on a purchase depends on the price of the property being bought. For someone selling a large family home and buying something smaller, the calculation typically involves losing a meaningful portion of the downsizing surplus to stamp duty on the new purchase. There is currently no specific stamp duty relief for older homeowners who are moving to a smaller property — unlike first-time buyers, who benefit from reduced rates on purchases up to £500,000. The Radix Big Tent Housing Commission has called for a stamp duty relief pilot for older movers, estimating that enabling more rightsizing could free up around 870,000 homes — but no policy has yet been announced.

The barriers that are not about money

The survey also highlights that financial costs are not the only reason over-65s hesitate to move. Non-financial barriers include:

These factors do not appear in a financial comparison between staying and moving, but they matter significantly in the actual decision. They explain why surveys consistently show a gap between the proportion of older homeowners who say they want to downsize and the proportion who actually do.

An alternative: accessing your home’s value without moving

One of the main financial motivations for downsizing is releasing some of the equity built up in the current home — to supplement retirement income, fund home improvements, support family, or simply to have more accessible money. If that financial outcome is achievable without selling and moving, the barriers associated with downsizing become irrelevant.

Releasing equity from the current property through a lifetime mortgage allows homeowners aged 55 and over to borrow against the value of their home, with the loan repaid when the property is eventually sold — typically when they move into long-term care or die. The homeowner continues to live in the property with the right to do so for the rest of their life. No monthly repayments are required (though some products offer that option), and the home does not change hands.

The practical comparison is between moving costs (stamp duty, estate agent fees, solicitors, removals, potential loss of local connections) versus the cost of a lifetime mortgage (interest that rolls up over time, reducing the equity remaining in the property when it is sold). Neither option is obviously better for everyone: the right answer depends on how much equity the homeowner wants to access, how important their current home and community are to them, and how they want the estate to look for their beneficiaries.

For a detailed comparison of staying put with equity release versus downsizing, see our guide to equity release versus downsizing.

Who equity release suits and who it does not

Equity release generally suits homeowners who:

It is less suitable for homeowners who want to maximise what they pass on to beneficiaries, those who would prefer to move to a different type of property for practical reasons (such as accessibility), or those who have sufficient liquid assets and do not need to access property equity at all. The decision is personal and depends on a range of factors specific to each homeowner’s situation.

This page is for general information only. It does not constitute financial advice. Equity release products reduce the equity available in the property over time. The right choice between staying and releasing equity versus downsizing depends on individual circumstances, including property value, age, health, retirement income, and estate planning goals.

Want to compare staying put with releasing equity against the true cost of downsizing? Request your free guide.

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