Devon, Bournemouth and the Cotswolds may spring to mind when it comes to traditional destinations for homeowners looking to downsize.
But today they are snubbing many of the old favourites and are instead buying homes in new locations – many of which are not where you might expect.
Destinations including Denbighshire and Stirling top the list as priorities change for the new wave of older home movers seeking out smaller properties.
Estate agents Hamptons analysed where downsizers make up the biggest share of all moves in local authorities across the UK in the past year. It used the criteria of giving up at least one bedroom. And the new hotspots are surprisingly cheaper than what British homeowners typically spend when shifting to a smaller property.
Across the UK downsizers free up an average of £18,800 after spending £359,400 on property. But it looks like they could spend as little as £114,800 for their new home in one area and free up as much as £245,900 in another.
Here are the new dream locations.
Why homes in bustling towns are snapped up
This one-bedroom Grade-II listed cottage is close to independent shops and restaurants in Framlingham, East Suffolk, at clarkeandsimpson.co.uk
Traditional dream destinations such as the Cotswolds or the Malvern Hills are noticeably absent from the list.
Instead, locations including East Suffolk, Peterborough and Milton Keynes in central England take the spotlight, with downsizers making up a large share of the movers in places with good transport links or close to city centres.
Richard Donnell, executive director at property portal Zoopla, says these moves are reflective of a broader shift in priorities – gone are the days when pensioners spent their retirement tucked away in a remote village.
‘A lot of popular places among downsizers were rural and not well connected, with only bus services, but now people want to be active,’ he says. ‘They want to be close to big cities or on good train lines.’
East Suffolk has the biggest share of downsizers, as 48 per cent of all moves in the past year came from those buying a smaller home.
It includes some of the east coast, such as port town Felixstowe, and smaller hamlets.
Sophia Fuller, head of Suffolk at Strutt & Parker, isn’t surprised it’s a favourite. ‘Downsizers here primarily come from out of area. It’s always been popular as there’s not just one seaside town here. Their children can come easily on the train from London, too.’
Richard Donnell, of Zoopla, says some places have declined in popularity because people want to live in better-connected areas
Downsizers spend an average £284,900 on their move to commuter town Crawley, a surprising addition to this list where 37 per cent of moves are made by downsizers.
It has excellent train links to London and is home to Gatwick Airport for those looking to jet off in their retirement years.
Mr Donnell says there are two types of downsizers. The ‘enforced’ ones who need to move if, for example, they have been widowed or have health issues and need to be closer to family. Then there are the ‘aspirational’ ones – who proactively make a move before it is necessary.
Hamptons lead analyst David Fell says: ‘Giving up a home where you have raised a family tends to make downsizing a daunting prospect, both physically and mentally.
‘Typically, the window of opportunity for “rightsizing” takes place in the decade after the last child leaves home.
‘This means someone in their 50s is around 50 per cent more likely to move than someone in their 70s. Those who choose to stay put for longer are ultimately much less likely to move to a more manageable home.’
It’s this proactive group of downsizers who are more likely to be drawn to busier rural locations. And Mr Donnell says downsizers are getting younger, too, as the cost of living bites for those rattling around in four or five-bedroom properties after children have left home.
‘People are conscious about the running costs of homes – they want more control,’ he adds.
It’s natural that these younger downsizers, perhaps in the more active years of their retirement, want to be closer to energetic areas.
A one-bedroom cottage just a short walk from Bridgnorth High Street and close to a wide range of amenities, at nockdeighton.co.uk
Take Oadby and Wigston, a local authority area just south of Leicester, where 42 per cent of the moves were made by downsizers. The average downsizer here spends £255,600. It’s just a 20-minute drive into Leicester city centre, where couples can enjoy a night at the theatre or visit the cathedral, but it also has green spaces and is close to the River Soar.
Those moving to South Northamptonshire spend £388,800 – more than the average UK downsizer at £359,400.
The area encompasses market town Towcester as well as picturesque villages Hartwell and Stoke Bruerne.
Some 34 per cent of all moves in the previous year were made by downsizers, and a huge £245,900 on average is released in equity.
Coastal towns with bang for their buck
Seaside towns have always been popular – they have beautiful scenery, close-knit communities and offer a slower pace of life.
Couples may envisage a retirement in Bournemouth, St Ives or the Welsh village Saundersfoot – but these classic coastal towns do not feature on the list.
Instead, more affordable areas such as Denbighshire in North Wales and Arun, home to Bognor Regis, are more popular among those transitioning to a smaller home.
Denbighshire takes second spot in the hotspot list as 44 per cent of all moves to the area in the past year were made up by downsizers.
The county is home to two seaside resorts, Rhyl and Prestatyn, as well as rural areas such as market town Denbigh, which is further inland. Downsizers seeking value for money should stay near the coast, experts say.
Lauren Jones, sales negotiator and valuer at Williams Estates in Denbigh, says: ‘Here we’ve got a lot of big properties with land. On the coast you’ll get a lot more value for your money than rural areas..’
A two-bedroom Grade-II listed cottage in a conservation area in Llandrillo, near Berwyn Mountains, at bowen.uk.com
The average downsizer spends £183,200 while releasing £63,700 in equity. Property portal Rightmove lists three-bedroom bungalows in Rhyl for £190,000.
Affordability is the main reason that Devon, Cornwall and the south coast are starting to be snubbed among downsizers, says Jonathan Handford, managing director of estate agents Fine & Country, as house prices and living costs there reach dizzying heights.
In Cornwall the average house price is £288,000 but in St Ives itis more than £513,000. There’s a finite amount of properties, so sellers in popular coastal areas can dig in their heels on price.
The knock-on effect means house-hunters are now seeking cheaper locations – buyers will look where they can get more bang for their buck and unlock even more equity from their home. And this trend is only set to continue, following the stamp duty hike on April 1, with buyers lowering their budgets to account for the increase in tax.
Take Maldon on the Blackwater estuary in Essex. It’s an ideal downsizer location with a picturesque quay and a vibrant centre, and some 34 per cent of moves in the past 12 months were made by downsizers.
While the average spent on their new home here is around £308,000 – one of the higher amounts on this list – they unlock £166,800 of equity.
It’s no different in Southend-on-Sea. A couple downsizing here – who are likely to have moved from the capital or the surrounding area in the South East – will spend £348,000 on their property but they release £135,600 in equity.
‘It might be a surprising addition to this list but it’s by the coast and its well-connected,’ Mr Donnell says.
Scotland gives you the best of both worlds
A two-bedroom, two-bathroom garden flat inside a former mansion house in Greenock’s West End, Inverclyde, at neillclerk.co.uk
A cluster of Scottish towns and cities feature prominently on the list – particularly Stirling, which comes in third.
Some 43 per cent of all moves to the city in the past 12 months have been by downsizers. This area in central Scotland boasts a castle and beautiful views. It is a short 35-minute drive from Glasgow and is 55 minutes to the capital Edinburgh, so ideal for downsizers who want access to cultural and financial centres without a hefty price tag.
Tony Griffith, manager of the Allen and Harris Stirling branch, says the city is ideal for downsizers who want a varied lifestyle.
‘It’s just a short drive from the Trossachs, Loch Lomond and mountains – you get the best of both worlds.
‘It’s a great lifestyle change – there’s convenience but on your doorstep we’ve got beautiful little vistas, lochs and mountains.’
Plus, Stirling is mainly a flat city, apart from the route up to its castle, which makes it ideal for those who want to leave the car at home and walk, says Giuseppe Paladini, director at Stirling-based Golden Tree Estates.
Housing prices in Scotland – and Stirling itself – are typically lower than in the South, which means downsizers can free up even more of the wealth tied into their property by moving there.
The average downsizer in Stirling spends £195,600 while freeing up around £96,400 of equity from their bigger property.
A property with a £200,000 asking price in Stirling tends to be a two or three-bedroom flat, according to Rightmove.
Mr Griffith has seen dozens of couples from the South, retired or empty nesters, who are selling their properties for the lifestyle change that Stirling offers.
Scottish regions Inverclyde and Dundee City also make the top ten hotspots, with downsizers making up a respective 41 per cent and 40 per cent of the moves in the past 12 months.
Downsizers relocating to the coastal Inverclyde can expect to spend just £163,500 on a new home while unlocking an average of £77,300 of equity.
Where you won’t even have to pay stamp duty
All but one of the hotspots are cheaper than the average downsizer spend of £359,400, Hamptons data shows.
Downsizers will be aiming to minimise their spends to account for a larger tax bill after the punitive stamp duty hike came into force last month.
Buyers must now pay stamp duty on the value of a property over £125,000. But downsizing to one hotspot means you won’t have to pay any stamp duty at all.
Dundee City is the cheapest, on average, out of the 20 hotspots.
Couples buying a smaller home here will spend just £114,800 on average with some £74,500 released. Some 40 per cent of moves here were made up of downsizers.
Another Scottish area, Renfrewshire, is among the cheapest, with the average downsizer paying just £125,900 for their new home while unlocking £88,200 in equity.
