I downsized at 42 – my family loves our compact home (and we saved £100,000)

When Alix Stoney, then 42, and her husband Andy decided to move from their four-bedroom, 1,500 square meter new-build home in the town of Halstead, Essex, eight years ago, they made an unusual decision. Because they had two teenage children, they decided to downsize rather than expand: they moved into a three-bedroom bungalow, 300 square meters smaller than their previous four-bedroom home, in the nearby village of Gosfield.

The Stoneys, who both worked in real estate, weren’t fazed by the height difference.

“We always wanted a project and I immediately fell in love with the property. There was a nature reserve next door, it had a lot of character and it immediately felt right.” For a while they were planning an extension to add a larger kitchen and utility room, but after living in the property for a few years they drew up renovation plans had, they realized that they didn’t actually need – or even want – any more space.

“Of course, part of that had to do with the costs. By not carrying out the work we saved around £100,000. As time went on, we thought more and more: Do we want to grow older with a big kitchen and less vacation, or vice versa? We also realized that we really like living in a smaller place. We saved money, but we also saved our sanity. I have about half of the housework to do, and I also know that I have a place where I can grow older without having to worry about having to maintain a lot of space or climb a lot of stairs in my twilight years . Our house is cozy and easy to live in and we love it.”

In many ways and for many people, downsizing – or buying a smaller home – makes perfect sense. As property prices and renovation costs rise, space in UK housing is becoming increasingly scarce. According to Rightmove, the average asking price for a house in the UK rose by one per cent in September, double the long-term average, to £370,759. In addition, the huge kitchen with a cooking island and folding doors isn’t exactly cheap. Labor shortages and supply chain problems have driven up renovation costs dramatically in recent years. According to consumer advocate Which, the average kitchen renovation will now cost you 22 percent more than it did in 2019.

The Covid pandemic sparked a race for space as people were previously crammed together and feeling claustrophobic after lockdowns set their sights on something bigger. A record 100,980 homes were bought by Londoners outside the capital in 2021, as city dwellers left the city in search of larger homes, according to research by estate agent Hamptons. However, some believe that at least at a certain point the race is no longer necessary – and in fact it has waned of late. According to Hamptons, just 69,180 Londoners moved out last year.

Recently, Kevin McCloud, host of the popular renovation and architecture TV show Grand Designs, said his biggest pet peeve is properties that are too big. In an interview with Radio Times to mark the show’s 25th anniversary, the presenter said: “Most houses could shrink by a third overnight and the residents would never notice.”

This is certainly something Stoney can relate to. “Originally we had planned this major kitchen renovation. If we had carried out the work originally planned, we would have brought the size of the bungalow almost to the size of our previous house. But honestly, as the plans progressed, I thought, I don’t even like cooking! We really don’t need all this extra space. People also argue about how many bathrooms you need – well, even with two teenagers we found one bathroom was just fine. We just worked together.”

The biggest advantage of downsizing is generally seen as financial savings. A 2023 report from comparison site Confused.com found that the biggest gain from downsizing, based on property values, came from moving from a four-bedroom property to a three-bedroom property, with an average price difference of 110,000 £.

For the Stoneys, however, the money wasn’t the biggest win. In fact, the family sold their previous property for £320,000 and the bungalow cost £495,000, although they saved huge sums by forgoing the renovation. For them, the benefits actually lay elsewhere: in monthly expenses, which were “probably hundreds of pounds cheaper every month” after they put in better insulation and new windows and doors, and also in their quality of life.

After deciding they would rather have a smaller space than expand the kitchen, the Stoneys knocked down a wall to create a larger open space for the kitchen and living area. Stoney, an interior designer, found it easier to create a cohesive atmosphere in a smaller space. “In fact, I often tell my clients that if you keep things simple, you can quickly make everything look better and slimmer.

“What I also like about the flow of our house now is that it feels like it’s consistent with what the house should be. This was a 1930’s house. We bought it from the son of the original owners, a couple named Olive and Roy. It was built for her as a wedding present. I love that we didn’t completely redesign the entire floor plan of the house and that it doesn’t feel like a monster version of what was originally intended.”

Of course, for many people, finances are the reason for moving, but that doesn’t necessarily mean that the smaller space has to be any less attractive. Tamsin White*, a media professional in her 40s, is another younger downsizer who moved in East London last year, from a £2.4 million home to a £1.6 million terraced house nearby. She moved with her two children because her marriage had failed and she wanted to stay as close to her old neighborhood as possible but without the burden of a mortgage.

“No mortgage and lower expenses are great. Insurance, utilities, etc. are about 20 percent cheaper,” she says. “But the fact that the houses here are laid out in rows and are less grand actually means that there is more of a sense of community on the street, a feeling that everyone is looking out for each other. The house also has a more practical layout – larger rooms, especially for teenagers. We love it.”

Lisa Jacobs, from Winkworth’s offices in Marlborough and Salisbury in Wiltshire, says they are seeing a trend towards earlier downsizing: people in their late 60s and early 70s and sometimes younger. “I think it’s often because you want to help kids get on the career ladder – downsizing helps parents free up capital to do that. It is also helpful in preventing the “too late” scenario. In our experience, most downsizers do this because they can no longer cope with looking after a large property.”

Sarah, 72, who is retired and has downsized several times in Winchester, Hampshire, agrees and says she recognizes the dangers of downsizing too late. “I want to be ahead of the curve.” Years ago, when she and her husband moved with their young children into a large four-bedroom house in Winchester from south London, she dreamed of kitchen extensions and Agas.

But then she and her husband separated and Sarah bought a three-bedroom terrace nearby. “Having the big house was stressful anyway because we were in the 90s and suddenly had 15 percent interest and a big mortgage. Even back then, I wasn’t afraid to move somewhere smaller.

“I’ve always been cost-conscious because of my upbringing – I grew up in precarious rented accommodation in south London with no central heating and like being in a smaller place with lower costs and cozier rooms.”

She moved into a three-bedroom terrace with her children and lived there for 13 years. Then, a decade ago, she moved to a two-bedroom house nearby, expanding the space from 900 square feet to about 800 square feet. “Now I’m thinking about downsizing again, possibly into a one-bed house. If my children or grandchild want to stay, we can all just muddle through. I think empty rooms are a waste. You can just invest in a nice sofa instead of a guest room.”

Sarah didn’t downsize to offer her children money, but because she has always been careful about saving, she has also been able to help her children buy a home by gradually downsizing in recent years.

Happy downsizers make life easier for the next generation and themselves. But according to Savills, downsizing numbers actually fell below 100,000 in 2023 to 2024 – the lowest level since 2013, as many older homeowners waited for the best possible market conditions to sell. This means there are fewer properties on the market, driving up prices for younger buyers.

Lucian Cook, director of housing research at Savills, said: “With the increasing number of older homeowners not adequately occupying their homes, encouraging further downsizing is vital to ensure we make more efficient use of the housing stock we already have .”

But it’s difficult – older homeowners have often spent decades in a single-family home and feel connected to it and the surrounding community. “Not only do downsizing homes typically feel an emotional connection to their home, but they also face additional hurdles: the lack of suitable stock for the move, the stress and complexity of the move, and the financial burden of stamp duty.”

Maybe the sooner you downsize, the easier it is to put down new roots. Alix Stoney and her husband feel great relief, not only at the thought of being able to stay in their current home into old age, but also because their current lifestyle has benefited their children and shown them that it is indeed possible to live happily may be happier with less stuff.

“We’re all very good at figuring out whether we really need things because we don’t have a lot of storage space. And actually, once you get used to it, you realize that you just don’t need that much. It’s mentally liberating,” says Alix. “My daughter and her partner are looking to buy a house now and I’m confident they won’t get overwhelmed knowing she can be just as happy with a roof over her head and less space.”