More than eight in ten homeowners approaching retirement plan to downsize

New research from law firm Morr & Co has revealed 85% of homeowners approaching retirement plan to downsize, as the debate over how property is taxed intensifies.

The study of 2,020 homeowners with an annual income of £40,000 or more found half (50%) definitely intend to move to a smaller property to help fund their retirement, while a further 35% say they probably will.

Those in their early 50s are the most committed, with almost six in ten (58%) of 50-54s saying they will definitely downsize, compared with 45% of those aged 60-66.

Laura Hooke, partner in the residential property team at Morr & Co, said longer life expectancy, care costs and the decline of final salary pensions were making the equity in the family home increasingly important.

She said: “More people are now treating the value of their home as a key source of funding for later life, alongside pensions and cash savings. Downsizing can provide that intermediate step, releasing capital while allowing them to move somewhere that better suits the next stage of their lives.”

Intentions to downsize vary across the UK, from 93% in Greater London to 59% in Yorkshire and the Humber. Homeowners in the South East are among the most hesitant, with just over a third (34%) certain they will downsize.

With the property industry calling for stamp duty relief for downsizers, Laura said an incentive could remove one of the barriers to moving, but cautioned that the detail would be crucial.

“There would need to be careful thought about who qualified, what constituted downsizing and how any relief was calculated,” she said.

However, there could be a significant gap between intending to downsize and actually doing it, Laura warned. Market uncertainty, adult children staying at home for longer and the stress of buying and selling after decades in the same property can all lead people to put off the decision.

This uncertainty comes amid signs of growing pressure on sellers – Rightmove revealed that September 2026 saw the highest number of asking price reductions in 15 years, with sellers cutting prices on more than 3,000 properties a day.

Laura added: “The problem is that the perfect moment can remain permanently just over the horizon. Someone may decide to wait for prices to improve, mortgage rates to change or the next Budget to pass, only to find there is another reason to delay six months later.

She advised against making the decision based on speculation about future tax changes.

Laura said: “We have seen buyers and sellers rush decisions because they feared a particular tax change, only for that change not to materialise. If you find somewhere that is right for the next stage of your life, continually waiting for the optimum economic moment could mean missing the opportunity.”

For more information, please visit https://morrlaw.com/

Ends

Editors notes

Research

The research was conducted by Censuswide among a sample of 2,020 UK homeowners aged 50-66 with an annual income of £40,000 or more. Fieldwork took place between 30 July and 13 August 2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge.

About Morr & Co

Morr & Co is a leading law firm with offices across Surrey, Hampshire and London, offering expert legal services to individuals, families and businesses throughout the UK.

With roots dating back to 1729, the award-winning firm combines centuries of legal heritage with a modern client-focused approach, operating across seven offices in Farnborough, Fleet, Guildford, Oxted, Redhill, Teddington and Wimbledon.

Known for its commitment to excellence, empathy and strategic insight, Morr & Co’s 150 strong team supports clients across corporate and commercial, commercial property, dispute resolution, employment, court of protection, family law, medical negligence, personal injury, private client and residential property.

For more information, please visit https://morrlaw.com/