Downsizing, on your terms

Often, but not always. Moving from an £850,000 home to a £600,000 one frees roughly £250,000 of equity, but the move itself typically costs £30,000–£40,000 once agent fees, stamp duty, conveyancing and removals are counted. Use the cost of downsizing calculator to see the net figure for your own numbers. Sometimes the answer is that it barely pays, and it's better to know that early.

For a typical move the big items are the estate agent fee on your sale (around 1.2% plus VAT), stamp duty on your purchase, conveyancing on both transactions (roughly £3,000–£3,500 combined), removals (£900–£2,200 depending on house size) and a survey. Most downsizers spend between 5% and 15% of the equity they free on the move itself.

Yes. Stamp duty is charged on the home you buy, regardless of age or the fact you're moving to something cheaper. There is no downsizer relief, despite periodic speculation. If you complete your purchase before your sale completes, the 5% additional-property surcharge applies too, though it's refundable if you sell your old home within three years.

They solve the same problem in very different ways. Downsizing releases equity by selling and moving; the money is yours outright and no interest accrues. Equity release (usually a lifetime mortgage) lets you stay put, but interest compounds against your home's value and reduces what you leave behind. Which suits you depends on your health, attachment to your home and estate plans. Speak to an FCA-regulated financial adviser before deciding.

Rightsizing means moving to a home that fits how you actually live rather than simply moving somewhere smaller: the rooms you use, on the floors you want, in the place you want. For many people the honest answer is not a small flat but a well-designed two- or three-bedroom single-storey home, which is exactly the kind of home Britain builds least of. That's why some downsizers commission one instead.

Earlier than most people do it. Moving in your 60s, while the process still feels manageable and you have years to enjoy the new home, is consistently reported as less stressful than moving in your 80s because stairs have become impossible. The readiness check on this site helps you work out whether it's the right time for you.

Bungalows use more land per home than two-storey houses, so volume developers almost never build them. They make up only a tiny fraction of new homes, down from around 7% in the mid-1990s. Existing bungalows are scarce and command a premium per square metre. The alternative is to buy a plot and build a single-storey home to your own design.

Yes. Every English council keeps a self-build register, and serviced plots, with planning permission and utilities to the boundary, remove most of the risk people associate with building. Commissioning means you get exactly the rooms you use, level access, low running costs, and you pay stamp duty on the plot rather than a finished house.

Not normally. If the home you're selling has been your main residence throughout your ownership, Private Residence Relief usually means no capital gains tax on the sale. Exceptions exist: long periods of absence, letting part of the home, or very large grounds. Take advice if any of those apply.