Advantages of upsizing or downsizing in 2018

Published: 29/01/2018

Finding your dream home in London W6, can be a challenge. You might need a larger property if your family is growing or if your children have left home you might be looking to downsize. There are advantages of both upsizing and downsizing in 2018. We asked our Guild agents for their opinions on what is happening in the market that makes it good for either upsizing or downsizing as well as advice.

There are pros and cons. Upsizing may have been a dream but think of the practicalities. Your utility bills, council tax, and maintenance bills will be higher. General upkeep will be a much larger task; from gardening to cleaning it will all take more time and resource.


Downsizing might be more practical, but how will the lack of space impact on you? Your utility bills might be cheaper, but will you be compromising? Maybe you hadn’t considered the need for a spare bedroom, or a utility space, what about the outside space? Or simply the fact you’ll be much closer to your neighbours. For many the realisation can sometime be quite an adjustment.

Ultimately the best time to upsize or downsize depends on personal circumstances. You have to be fully aware of market conditions, your budget, and be honest about your needs and requirements, otherwise you could stand to lose out financially and emotionally.”

In the Hammersmith and West London area over the past two to three years we have seen prices softening, but this offers the most fantastic opportunity to trade up to that dream house. When people sell there is much focus on ‘what will I get for my house?’ An important question of course, however if you are planning to trade up to a more expensive property, is that the right question? 

For instance, if you have a property ‘worth’ say £1,000,000 and prices have dropped by 10%, thus is now ‘worth £900,000 but you wish to buy a property that had a value of £1,750,000, and this too has dropped 10%, so is now available at £1,575,000. The gap between the 2 properties is £675,000. Had the prices been more stable, the gap would have been £750,000, so the saving now is £100,000.

Equally if prices are rising, again using 10%, we see the values being £1,100,000 and £1,925,000 respectively, a gap now of £825,000.

This example shows how using a ‘poor market’ can be a great opportunity. Sometimes focusing on ‘how much can I get?’ is not the right question, when it should be, what is the difference I must pay?
Strong buyer demand, affordable lending and stable house prices makes this a perfect market for both up-sizers and down-sizers, here in the South West.

Whether looking to move to a larger property or seeking to move to a smaller, easier to manage home, stable prices make it easier to plan and healthy demand from buyers who can afford to borrow help make the current market fluid. Moving up or down the market, actual and purchase prices are less important than the price differential between the two.

 Across the country, it seems that stock is an issue and whilst this may mean that new homes developers are taking a larger share of the market, competition between them is keeping prices steady. This doesn't mean that up- sizers and down-sizers are so limited in choice though - it simply means that if they can't find what they're looking for, they need to work with an experienced local agent that provides a search and acquisition service. Down-sizing or up-sizing, if you are looking to move but can't find your ideal next home, ask for details of our Search and Acquisition service.

The main reasons we find people choose to downsize is to release equity, go mortgage free, or the property they are in may be bigger than what they need.  I believe downsizing is one of the hardest moves a person can make as there is going to be comprise.  Therefore, our advice would be to think about what you are prepared to comprise on.  If you only want a specific location, you may have to comprise on the size of the property or is off road parking is necessary for you, you may have to give up that extra bedroom.

 The market offers advantages now for those looking to upsize or downsize – since November 2017, first time buyers have not needed to pay Stamp Duty Land Tax (SDLT) on properties priced up to £300,000 which will speed up the time it takes them to save for their first home. Mortgage rates are still at a historic low making a bigger mortgage more affordable for many people.

 You might be looking to upsize to accommodate a growing family or to downsize to release capital, reduce outgoings or if your children have left home. Whatever the reason, I would advise you to book a professional valuation and speak to a mortgage advisor before selling your home.

If you’d like to upsize, plan. Perhaps you’d like to relocate to be closer to catchment areas for schools. Consider the timing of the school year when planning your move and allow for any delays in the chain.

For those looking to downsize, be realistic about the amount of space you need. Ask yourself: are you using all the space you’ve got, or have you simply expanded to fill it? You’ll also need to consider the factors which are important to you such as public transport, facilities, and the local community.

As the market cools off, opportunities can arise for those looking to up-size as larger properties come down in value more quickly than the lower end of the market, which is propped up by both first-time-buyers and BTL investors. This can create an opportunity for buyers to procure a large property at a lower price, while still achieving a good price for their own.

As the cost of living rises, down-sizing offers an opportunity to lower the running costs of your home and free up capital to spend on refurbishment of a new, smaller property. The market has been rising for many years and since 2016 has begun to cool, making this a good time to down-size, realise large assets, cash in, and invest in a lower-value property, lowering your exposure to the market. With the cost-of-living rising, lowering your mortgage out-goings is always a wise move, too.


For more help, advice or information with selling and or buying a home please email or call 020 8222 9958