What downsizing actually costs, and what it frees
Downsizing is sold on the equity it releases; the costs get mentioned in passing. This calculator puts both on the same page: every fee of the move, subtracted from the price gap, with a straight verdict on whether the sums work.
Interactive: cost of downsizing
What the move costs, and what it frees
Every cost of a downsizing move, set against the equity the smaller home releases. All figures are editable; the defaults are typical 2026 numbers.
A realistic sale price, not an optimistic one.
Buying before you sell?
Adjust the fee assumptions (agent %, conveyancing, removals…)
Percentage of your sale price, before VAT.
Including searches.
Prefilled from your bedroom count.
Equity freed, after all moving costs
£211,760
£250,000 price gap − £38,240 total moving costs (15% of the equity freed).
Worth it, but the costs are real
The move consumes a meaningful slice of what it frees. Still a sound trade for most people: just go in with the full figure in view, and shop the fees.
Where the money goes
- Estate agent fee (sale)1.2% + VAT on your sale£12,240
- Stamp duty (purchase)£20,000
- Conveyancing (sale)£1,400
- Conveyancing incl. searches (purchase)£1,800
- Removals£1,700
- Survey on the new home£800
- EPC and sundries£300
- Total cost of the move£38,240
Another way to spend the same £600,000: buy a serviced plot (typically 30–40% of the budget) and build with the rest. At a standard specification of £2,900/m², that's roughly 124–144 m² of brand-new home designed around you, with stamp duty on the plot alone. A generous three-bedroom single-storey home is about 120 m², comfortably inside that range.
01The costs, item by item
Where the money goes
Estate agent's fee
Charged on your sale: typically 1% to 1.5% plus VAT for a high-street sole agency. On an £850,000 home at 1.2%, that's about £12,200 with VAT. Usually one of the biggest costs, and the most negotiable: get three quotes.
Stamp duty
Charged on the home you buy, whatever your age: £20,000 on a £600,000 purchase at current rates. Complete the purchase before your sale and the 5% surcharge applies on top, refundable if the old home sells within three years.
Conveyancing, twice
You're selling and buying, so two sets of legal fees: roughly £1,400 on the sale and £1,800 on the purchase including searches. Chains involving retirement properties can carry extra legal work; ask for a fixed quote.
Removals and clearance
From about £900 for a two-bed to £2,200+ for a five-bed, for a local professional move. Downsizers usually add house clearance for what isn't coming; sell or donate early rather than paying to move things twice.
Survey and sundries
A Level 2 survey on the new home runs £400–£1,000. Add an EPC if yours has lapsed, mail redirection, and the small costs that cluster around completion day.
Stamp duty, in detail
The buy-before-you-sell surcharge and the plot alternative deserve their own page: stamp duty when downsizing.
02A worked example
£850,000 to £600,000: the honest sum
Selling a four-bed family home at £850,000 and buying at £600,000 frees a £250,000 price gap. The move costs roughly £38,000: about £12,200 in agent fees, £20,000 in stamp duty, £3,200 in conveyancing, £1,700 in removals, and £1,100 in survey and sundries. Net equity freed: around £212,000. The move consumes 15% of the gap.
For most people that's a sound trade, and the running-cost savings of a smaller, newer home compound it every year. But run the same sum on a £700,000-to-£600,000 move and the picture changes: a £100,000 gap, £36,000 of costs, and the move eats over a third of what it frees.
When downsizing doesn't pay: small price gaps, expensive areas where the smaller home costs nearly as much as the larger one, and moves motivated by money alone. When it still makes sense anyway: the right home, on one level, cheap to run, in the right place, which is a housing decision, not a financial one. The calculator will tell you which conversation you're in.
03Rightsizing by commissioning
If the right home isn't for sale, have it built
Commissioning a home sounds like something other people do. In practice it means buying a serviced plot and briefing a builder, and for downsizers the sums have a way of working that surprises people.
Exactly the rooms you use
Two or three bedrooms, one level if you want it, a kitchen that fits how you actually cook. Designed around your list, not a developer's standard types.
Stamp duty on the plot only
Duty is charged on what you pay for the land, never on the build. Against buying an equivalent finished home, the saving is usually five figures.
New-build running costs
EPC A or B by default under current regulations, with a structural warranty. The running-cost gap over an older house pays real money every year.
Serviced plots take out the risk
Planning permission granted and utilities to the boundary before you commit. The uncertain parts of building happen before you buy, not after.
04Common questions
Downsizing costs, answered
How much does it cost to downsize in the UK?
A typical downsizing move costs £25,000–£40,000 all-in. The largest items are the estate agent's fee on your sale (around 1.2% plus VAT, about £12,200 on an £850,000 home), stamp duty on the home you buy (£20,000 on a £600,000 purchase), conveyancing on both transactions, removals and a survey. The calculator above itemises each one for your own figures.
Is stamp duty payable when downsizing?
Yes, on the home you buy. There is no exemption for downsizers or for pensioners. Buying at £600,000 currently means £20,000 in stamp duty. If you complete the purchase before your sale, the 5% additional-property surcharge is added on top, refundable if you sell your previous main home within three years.
Who pays the estate agent's fee?
The seller. You pay an agent to sell your current home, typically 1% to 1.5% of the sale price plus VAT for a sole agency high-street agent, and nothing to buy the next one. On a larger family home this is usually the single biggest cost of the move.
How much do removals cost?
Roughly £900 for a two-bedroom home up to £2,200 or more for a five-bedroom one, for a local move with a professional firm. Long distances, packing services and storage between completion dates add to that. Downsizers often also budget for house clearance of what won't fit the new home.
How much equity does downsizing typically free up?
It depends entirely on the price gap between the two homes. Moving from £850,000 to £600,000 frees £250,000 before costs. Call it £210,000–£220,000 after them. The calculator shows the net figure, and what share of it the move consumes, so you can judge whether the sum works.
What does it cost if I buy before I sell?
Two things: the 5% additional-property surcharge on the whole purchase price (refundable within three years of selling your old home), and the carrying costs of owning two homes at once: insurance, council tax and utilities on both. Bridging finance, if you need it, adds arrangement fees and monthly interest on top.
Disclaimer
About the estimates on this page
The interactive tools on this page produce estimates for planning purposes only. They are not financial, tax, legal, mortgage or investment advice, and they are not a substitute for professional advice on your specific situation.
Rates, thresholds and typical costs change frequently. Always verify current figures before making decisions or committing money:
- Stamp Duty Land Tax: figures cover England and Northern Ireland. Confirm bands, the additional-property surcharge and refund rules with HMRC's official SDLT calculator and your conveyancer. Scotland (LBTT) and Wales (LTT) use different bands and rules entirely.
- Moving costs: agent fees, conveyancing, removals and survey defaults are indicative national figures. Get real quotes; they vary widely by region, property and firm.
- Running costs: energy and maintenance figures are rough comparison rates by EPC band and property age, not predictions of your bills. Energy prices in particular move with the Ofgem price cap.
- Build costs: £/m² ranges are based on published industry averages and vary substantially with specification, region and build route. Floor areas reference the Nationally Described Space Standard.
- Equity release: a regulated financial product. Nothing on this page is advice about it; speak to an FCA-regulated adviser specialising in later-life lending before considering it.
- The readiness check: a structured way to think, not an assessment of you. Big decisions deserve conversations, not just scores.
Livedin accepts no liability for decisions made on the basis of these estimates. Always take qualified advice before selling, buying, building or relying on a financial calculation.
The right smaller home might not be for sale yet
See how downsizers commission exactly the home the market won't supply: serviced plots, single-storey living, and stamp duty on the land alone. Free to browse.