Four million over-55s plan to downsize

Nearly four million homeowners aged over 55 have plans to downsize, according to a new survey.

But despite the chance to make an average of £112,000 by selling up, the convenience of having a smaller home is more important than raising cash.

The nationwide study by Prudential found nearly half (47 per cent) of over-55 homeowners plan to sell and move to cheaper homes in later life.

On average, they expect to raise around £112,000 in equity by downsizing, with around one in 10 (11 per cent) expecting to make more than £200,000.

However, the main reason given for downsizing is the convenience of running a smaller home in retirement - with nearly three-quarters (74 per cent) rating convenience as their main reason for downsizing.