Downsizing vs staying put: a financial comparison
Downsizing vs staying put comes down to whether the money released by moving outweighs the costs and upheaval of the move. Downsizing can free up cash and cut running costs. Staying put avoids moving costs and keeps you in a familiar place, and you may still be able to release equity or adapt your home.
This guide sets out the costs and trade-offs on both sides. It is general information, not financial advice.
The costs of moving
Moving is expensive, and the costs come out of the equity you release. The main ones are:
- Estate agent fees on your sale, usually a percentage of the sale price plus VAT.
- Stamp Duty Land Tax on your purchase in England and Northern Ireland, with Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales.
- Conveyancing, searches and surveys for both the sale and the purchase.
- Removals, plus any new furniture or work on the new home.
As a simple illustration, not based on current market data, selling a £450,000 home and buying a £300,000 one releases £150,000 before costs. If moving costs came to around £15,000, you would be left with roughly £135,000.
Use the downsizing calculator for an indicative figure based on your own numbers.
The costs of staying put
Staying put has costs too, which are easy to overlook:
- Maintenance: roofs, boilers, windows and gardens in a larger or older home.
- Running costs: heating, insurance and council tax on space you may no longer use.
- Adaptations: changes that help you live safely at home as your needs change.
Over a long retirement these can add up, so compare them with a smaller home's running costs, including any service charges.
Releasing equity by staying put
If the main reason to move is to free up cash, there are ways to do that without selling:
- Equity release: a lifetime mortgage lets homeowners aged 55+ borrow against their home, usually with no monthly repayments. It can provide tax-free cash, but interest compounds, the debt grows, and it reduces what you can leave behind.
- A retirement interest-only (RIO) mortgage: you pay the interest each month, so the debt does not grow, but the payments must remain affordable for the long term. The loan is usually repaid when the home is sold.
Our guide to equity release vs downsizing compares these routes in more detail.
Home adaptations and grants
Adapting your home can make staying put more practical. In England, a Disabled Facilities Grant from your local council may cover adaptations such as stairlifts, level-access showers, ramps or wider doorways, up to £30,000. It is means-tested for adults and needs an assessment of your needs.
Wales, Scotland and Northern Ireland have their own arrangements.
Wellbeing, location and care
The numbers are only part of the decision. It is worth thinking about:
- Nearness to family, friends and health services.
- Access: stairs, steep drives or distance from shops and transport matter more as mobility changes.
- Community: leaving a long-standing neighbourhood can feel isolating, though a move can bring new connections.
- Future care: whether your home could support care at home. See our guide to paying for care.
A balanced way to decide on downsizing vs staying put
A few questions can help structure the decision:
- How much money do you actually need, and for what?
- What would you release after all moving costs? Compare this with borrowing options, including their long-term cost.
- What would your running costs be in each home?
- Could your current home meet your needs in 10 years, with or without adaptations?
- How do you feel about moving? Practical and emotional factors are valid reasons either way.
Our downsizing explained guide covers the practical process of moving. Because every option affects your finances and your estate differently, speaking to an FCA-regulated adviser can help you weigh them for your circumstances.
Not sure which option fits your circumstances?
Written and reviewed by the Later Life editorial team. Last updated .
Frequently asked questions
How much does it cost to downsize?
It depends on the prices involved and where you live. The main costs are estate agent fees on the sale, Stamp Duty Land Tax (or its equivalent in Scotland and Wales) on the purchase, conveyancing, surveys and removals. Together these can reach many thousands of pounds, so it is worth getting quotes and working out the net amount you would actually release before deciding.
Can I release money from my home without moving?
Yes, there are options. Equity release lets homeowners aged 55+ borrow against their home, usually with no monthly repayments, but the debt grows and reduces your estate. A retirement interest-only (RIO) mortgage keeps the debt level if you can afford monthly interest payments. Both need advice from an FCA-regulated adviser.
Is there help with the cost of adapting my home?
In England, a Disabled Facilities Grant from your local council may help pay for adaptations such as stairlifts, level-access showers or ramps, up to a set limit. It is usually means-tested for adults and needs an assessment. Wales, Scotland and Northern Ireland run their own schemes, so check with your local council first.
Will downsizing definitely lower my bills?
Not always. A smaller home often costs less to heat, insure and maintain, and may sit in a lower council tax band. But a newer flat or retirement property can carry service charges, ground rent or other fees that offset some of the savings. Comparing the full running costs of both homes gives a clearer picture.
Should I wait until I need care before deciding?
Waiting keeps your options open, but moving can become harder if health changes suddenly, and decisions made in a hurry can be costly. Some people find it helpful to think through a plan in advance, including how they might pay for care. Our guide to paying for care sets out the main routes.