Downsizing Home in 2025

Why Homeowners are Considering Downsizing in 2025

Downsizing involves moving to a smaller, often more manageable home. It appeals to various groups, including retirees, empty nesters, and those looking to reduce expenses or unlock equity. While the concept isn’t new, current trends in the housing market and broader economic shifts make 2025 an ideal time to explore the benefits of downsizing.

2025 Offers a Balanced Market for Buyers and Sellers

Rightmove anticipates a 4% rise in asking prices by the end of the year, signalling steady growth and confidence in the market. If you’re considering downsizing your home in 2025, now could be an ideal time to maximise your return. At Any House Wanted, our expert property buyers can provide you with a free property valuation of the house that you are looking to sell. 

Falling Mortgage Rates May Drive Buyer Demand

Mortgage rates are forecast to drop in 2025, with Rightmove estimating a fall to around 4.0% for two-year and five-year fixed-rate mortgages. Meanwhile, Goldman Sachs predicts that the Bank of England’s base rate could fall to 2.75% by year-end, potentially pushing rates even lower to 3%.

This anticipated decline will make homeownership more affordable for many, encouraging more buyers to enter the market. If you’re planning on downsizing your home in 2025, lower rates could attract more interest in your property, resulting in quicker offers and potentially multiple bids. Take advantage of the increased buyer activity by booking a free property valuation with us today and start planning your next move.

Act Before Stamp Duty Increases – A Surge in Early 2025

Stamp duty rates are set to rise from April 1, 2025, which is expected to drive heightened buyer activity in the first quarter of the year. Many buyers, including first-time buyers and movers, will aim to complete their transactions before the new rates take effect to save on costs.

This anticipated rush presents a unique opportunity for sellers looking to downsize their homes in 2025. Listing your property early could attract motivated buyers eager to finalise deals before the deadline, ensuring a smoother sale and potentially better offers. Our team can assist you in providing a valuation of your property and cash offer in a less as 7 days, helping you get the cash offer on your property on the heightened demand.

Remortgaging Trends Will Add More Buyers to the Market

With many fixed-rate mortgages set to end in 2025, remortgaging is expected to be a key trend. Falling interest rates will give homeowners an opportunity to secure better deals and reduce their monthly repayments, boosting their purchasing power.

This shift will likely lead to a surge in buyers actively seeking properties, creating a vibrant market environment. For those downsizing their home in 2025, this is great news. Increased buyer competition can translate to quicker sales and stronger offers. Our experts are ready to guide you through the process, ensuring you get the cash you need for your next move in less than 7 days.

Rising Market Activity – Over 1.15 Million Completions Forecast

Rightmove predicts 2025 will see approximately 1.15 million property completions, reflecting increased activity and improving market conditions. With more buyers and sellers participating, the market is set to be dynamic and engaging.

For those considering downsizing their home in 2025, this surge in activity means a great time to sell your home to cash house buyers like Any House Wanted. Selling your property to us can help you achieve a faster sale and secure the best possible outcome.

Inheritance Tax Changes Could Drive Downsizing Among Older Homeowners

The Autumn Budget announcement has brought significant implications for over-50s homeowners, many of whom may now consider downsizing their homes. Chancellor Rachel Reeves committed to freezing the current inheritance tax (IHT) thresholds until 2030, maintaining the £325,000 limit for estates and up to £500,000 for those leaving their main residence to children.

These thresholds, unchanged since 2009, combined with rising property values, mean more estates are likely to fall within the IHT bracket. Furthermore, starting in April 2027, unused pension funds will be subject to inheritance tax, adding another layer of complexity for homeowners planning their estates.

While the £1 million IHT relief for couples on their main residence remains intact, a gradual increase in exposure to inheritance tax is expected as asset values continue to rise. This could incentivize older homeowners to downsize, passing wealth down to future generations more efficiently.

For owners of agricultural or business property, significant changes are also on the horizon. From April 2026, inheritance tax relief for such assets will be capped at 100% on the first £1 million, with relief reduced to 50% for values exceeding that threshold. This adjustment may reduce some tax advantages but is unlikely to significantly impact farmland values due to the scarcity of land on the market.

A Move Toward Freedom

Downsizing is more than just a financial decision; it’s a lifestyle choice that can bring peace of mind, a sense of liberation, and an opportunity to focus on what truly matters. With market trends in 2025 favouring both downsizers, now may be the perfect time to make this transition.

Looking to Downsize Your Home in 2025?

If you’re considering downsizing in 2025, at Any House Wanted we’re cash buyers that can help you achieve your goals. We offer a swift, hassle-free sale, completing the process on a timeline that suits you. At Any House Wanted, we purchase properties in any condition and location. With all fees covered and a quick viewing process, you’ll receive your cash in full, allowing you to move forward confidently.

Take the first step toward a simpler, more fulfilling lifestyle. Call us on freephone 0800 389 7305 and get a free, no obligation valuation and consider your options.

Learn more > Why Buying or Selling Before 1st April 2025 Could Be the Best Move for You