2024 is the year of the downsize. 47% of all people selling their homes this year have chosen to move to a smaller property, a record high. Why is it becoming a popular option in Hull, is it worth the move, and what’s the easiest way to do it?
Why?
Downsizing has gained traction in Hull for reasons similar to the rest of the UK. As the Guardian.com reports, while mortgage rates have skyrocketed, the choice to reduce the number of bedrooms in your next home can minimise those monthly mortgage repayments. And it can be enough to gain back control over your financial future.
Another driver has been Hull County Council, who introduced their enhanced downsizing scheme this year, an incentive designed for families in need of larger council homes. The scheme has encouraged a substantial amount of downsizing in the rental sphere, where those under-occupying a council home have been incentivised to move to smaller properties.
With perks like arranging and paying for removals, along with two weeks of free rent in their new property, the scheme has been a great success in freeing up under-occupied larger homes to families who are in need of all the rooms.
Is it worth it?
Beyond reducing your mortgage repayments, taking off a bedroom can free up significant amounts cash that can either be pocketed or go towards a lump sum to get your mortgage completely paid off.
Moving from a 4-bed to a 3-bed can give Hull residents the biggest margin for savings, releasing on average £110,000 by losing that one bedroom.
The same goes for bills. According to the Homeowners’ Alliance, moving from a 5-bedroom house to a 2-bedroom house can take over £1,000 off your fuel costs a year.
How?
The savings are enticing to anyone feeling the cost of living, but it must be remembered that moving still has considerable outgoings, that should be weighed into the bigger picture. Stamp duty, estate agent commission and legal fees will all factor in if you should choose to downsize.
There are ways to cut these hidden costs. Online platforms replacing the original estate agent model are gaining in popularity throughout the country. WeBuyAnyHome.com is an example of a service that buys homes with cash for no extra fee or commission. While traditional methods can take on average 6-9 months, these services can cut a move down to as little as seven days.
Selling a home in Hull is more straightforward than finding and buying a smaller property. Only last month, BBC.co.uk reported the shortage of funding for affordable houses in the area, with 133-property development Dane Park losing its government backing. However, with the Affordable Homes Program in its penultimate year, there are significant existing commitments for new homes that will soon arrive at completion.
This is promising news for anyone wishing to downsize for financial reasons in the near future.