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Published by Barclays.
What happens when the home that fitted your life for so long no longer fits your needs? Your children might have grown up and moved into homes of their own. A property that once worked perfectly might now feel like more space, and more upkeep, than you need.
Or you might be thinking about whether a smaller, cheaper home could give you greater flexibility for the next stage of life.
For some homeowners, that can be the impetus to move to a smaller property. This is what we mean by right-sizing: moving to a home with fewer bedrooms that is better suited to the household.
It could mean finding somewhere that works better for the next stage of life, while potentially releasing money tied up in the property they leave behind.
For some homeowners, the idea of moving might be appealing. Making the move work in practice can be more complicated.
Finding the right property, meeting the costs and navigating the process of buying and selling, and deciding whether the finances add up can all influence whether someone takes that next step.
The impact of that move might not stop at the front door. Freeing up a larger home could give another household the opportunity to move into the space it needs, potentially freeing another home in turn.
At scale, those individual moves could help create greater movement across the housing market.
There are indications of how significant that opportunity could be.
The Radix Big Tent Housing Commission estimates that rightsizing has the potential to release up to 870,000 family homes back into the housing market.
That potential is particularly relevant given how Britain’s existing homes are being used. The latest English Housing Survey found that 40% of households in England were under-occupied in 2024-25. Among owner-occupied households, the figure was more than half.
At the same time, the policy landscape has shifted. The Government has put housing supply at the heart of its agenda, reaffirming the Starmer Government’s ambition to build 1.5 million homes by the next Parliament, alongside a new £39 billion Social and Affordable Homes Programme and changes to the planning system.
Increasing housing supply is critical. But the challenge is not only how many new homes we build. It is also how effectively we use those we already have.
That makes this an important moment to revisit the question Barclays first explored in 2024: how can we unlock the potential for right-sizing to make better use of Britain’s existing housing stock?
The Right-sizing Revolution, Barclays’ 2024 report, identified groups of under-occupying homeowners representing around 3.8 million households with high potential to right-size if the right conditions were in place.
It also highlighted what could stand in their way, including the cost and complexity of moving and the availability of suitable alternative homes.
Almost two years later, Barclays is returning to the opportunity. Our new policy snapshot, Rightsizing Revisited, uses new consumer research to look more closely at the barriers shaping homeowners’ attitudes towards downsizing, and what could make it more attractive.
The snapshot is available to download at the bottom of the page.
New Barclays research for Rightsizing Revisited found that 53% of homeowners surveyed had no intention of downsizing. But alongside them is a meaningful group who are open to the possibility.
Around one in four homeowners surveyed, 24%, were classified as “potential downsizers”, ranging from those actively planning a move to those who would like to downsize eventually but do not yet know when. A further 10% said they had already downsized.
Having spare bedrooms does not, of course, mean someone should move. Homes carry memories and relationships, connect people to their communities and provide space for family and friends. For many homeowners, staying put will remain the right choice.
The opportunity lies with those already considering a different home. What could make that choice easier?
18%, of potential downsizers said housing-related costs had caused them to put off moving to a smaller home
Cost is one place to start.
Among homeowners who had not already downsized, Stamp Duty was the most commonly cited financial deterrent, at 27%, rising to 36% among potential downsizers.
The cost of adapting or renovating another property was cited by 27% of potential downsizers, while legal, conveyancing and estate agent fees also featured prominently, as did moving and removal costs.
For some, those costs appear to be delaying a move. Almost a fifth, 18%, of potential downsizers said housing-related costs had caused them to put off moving to a smaller home in the previous three years, compared with 6% of homeowners overall.
Homeowners are also weighing those costs against what they could gain. On average, those surveyed said they would want £109,000 left from the sale of their home after buying a smaller property and covering the associated costs and taxes for downsizing to feel financially worthwhile.
Being open to moving is only the starting point. The numbers have to stack up too.
The financial appeal of downsizing is not just about the cost of the move. It is also about what homeowners could do with the money released.
Among those who had already downsized, 47% said they had kept money left over as a financial safety net or savings buffer.
Potential downsizers had similar priorities: 39% said a financial buffer would be an intended use for any money released, while 35% would put it towards future living costs, including retirement, later-life housing or care.
For some people, then, moving to a smaller home could create greater financial flexibility while providing a property that works better for the life they lead now.
That makes the upfront cost of moving particularly important. If part of the attraction is releasing money for later life, transaction costs can quickly reduce the financial benefit.
There are already examples elsewhere in the housing system of financial support being used to reduce those costs.
The London Borough of Richmond upon Thames’ Downsizing Right Fit scheme offers eligible social housing tenants £3,000 for each bedroom they give up, up to £12,000, alongside a £500 one-off payment and paid removal costs. Hounslow Council offers eligible council tenants £2,000 for every bedroom given up, as well as £300 towards removal costs.
These schemes operate in a different part of the housing market, but demonstrate how financial support can be used to reduce some of the immediate costs of moving.
Even if the finances add up, a move still depends on finding the right home in the right place.
That comes through strongly in Rightsizing Revisited. Among potential downsizers, 70% said Stamp Duty relief or exemption would be likely to encourage them to move and 67% cited financial help with moving and legal costs.
But supply-related measures were close behind: 67% said more suitable smaller homes being built locally could encourage them to downsize, while 66% cited more affordable retirement or accessible housing.
The experience of those who have already downsized reinforces the point. Among this group, 39% said their previous home had been larger than they needed, while 38% wanted a property more suitable for getting older.
Suitable may not necessarily just mean smaller. Location, ease of maintenance and the ability to remain close to family, friends and local services can all influence whether moving represents a genuine improvement.
That brings right-sizing back to the wider question of housing supply. Building more homes is vital, but if we want people to move as their circumstances change, what we build and where we build it count too.
There is no single intervention that will unlock right-sizing, nor will every homeowner want to move. The opportunity lies with those already considering it.
For them, two things stand out: making moving financially worthwhile and ensuring suitable homes are available. One without the other will only go so far.
Britain needs more homes, but it also needs to make better use of those it already has.
Helping people who want to right-size could give them greater choice and financial flexibility, while freeing larger homes for households looking for more space.
Our housing needs change as our lives do. The housing market needs to make it easier to move with them.
Unless otherwise stated, the research in this article was carried out from 4 – 7 August 2026 by Opinium Research on behalf of Barclays. It was conducted with 2,000 UK adults, providing a representative sample by age, gender, region, and income group. Results are weighted to be nationally representative.