Moving from a four-bedroom to a two-bedroom home could release over £300,000

In England and Wales 1.29 million owner occupiers aged 65 and over currently live in four-bedroom homes. According to new research by Savills, moving to a two-bedroom could unlock an average £305,090 – depending on location. This could represent a tax-free income of over £1200 a month for 20 years for the average downsizer aged 65.

Written by

Sheila Frampton

The team at Savills explains that those who are approaching or have reached retirement age have generally benefitted from house price growth over the years – particularly in high value locations.  Of course, those living in the more affluent areas of London are likely to release the most equity by downsizing as compared to those living in the North East.  Outside of London, Elmbridge residents have the potential to unlock the most equity.

Downsizing won’t only provide additional funds to boost the pension provision, however.  By moving to a new home that is more energy efficient can mean substantial savings in terms of energy and maintenance.  In January 2025, the House Builders Federation revealed that the average annual energy bill for a new build house is up to 55% less than the average older house in an update to their the ‘Watt A Save’ report.  That’s an average monthly saving of £81.60, saving over £970 a year.  What’s more, new build homes are better for the environment, emitting 65% less carbon a year than older homes.

Specialist retirement developer, Beechcroft, designs its new homes in such a way to minimise heat loss.  The homes feature air source heat pumps which have lower running costs and lower carbon footprints than traditional heating methods and work well with the energy-efficient underfloor heating systems.  Triple glazing, high levels of insulation and a whole house ventilation and heat recovery system which pre-warms the air all reduce winter heating bills.

As one Beechcroft home owner comments "Since moving in, I have been surprised by just how warm our Beechcroft apartment is.  We never feel cold and our heating bills are much lower than in our previous home."

A woman in her drawing room with her dog
A man sat in his office on a laptop
A man sat with a dog in the drawing room playing the guitar

Beechcroft homes feature LED lighting which consumes less energy as well as having a longer lifespan than other forms of lighting and all are designed to provide plenty of natural light, reducing the reliance on electric lighting. 

Kitchens are both stylish and practical, fitted with a full complement of integrated, energy-saving appliances.  Several developments provide a shuttle bus service although locations close to local shops and services are selected to reduce travel.

Why are older homeowners reluctant to downsize?  There are many reasons for this.  One of the most common is the misconception that downsizing means moving to a cramped apartment without any outside space.  Beechcroft has been creating award-winning retirement developments for 40 years and has, throughout the decades, adhered to its founding principle:  designing homes with plenty of living space regardless of the number of bedrooms.

What people say...

Beechcroft’s elegant two and three-bedroom houses typically feature a generously proportioned drawing room, dining room, sun room and a kitchen that is both elegant and practical. 

Some apartments include a central dining/hall, flexible space that could be used for formal dining, as a second sitting room or reading room – or simply as an impressive hallway.  In two-bedroom homes, both bedrooms are double rooms and in all homes the principal and second bedroom have fitted wardrobes.  Bathrooms and en-suites, finished to a high standard, come complete with vanity units and mirrors.  New and converted homes provide outside space – a terrace, balcony, roof terrace, private garden or a combination of these and private gardens, as well as the beautifully landscaped setting, are maintained by the on-site estate manager.

Another major concern which makes older homeowners reluctant to downsize is the cost and the upheaval involved in moving – particularly if they’ve lived in an older family home for many years.  It’s true that estate agent’s and legal fees can be costly and that moving is stressful – at any time of life – but the Beechcroft team is on hand to help.  Beechcroft offers two services – Moving Made Easy and Manage Your Move

Moving Made Easy is a fully managed assisted sale service to help homeowners have a swifter, less stressful move.  This scheme means Beechcroft buyers are able to reserve the home of their choice for six weeks, during which time the team helps develop a marketing strategy to sell their current home before the end of that time.  The team manages the sale, progressing it through to exchange and covers the cost of the sales service including the estate agency fees. 

Beechcroft homebuyers choosing to use the Manage Your Move service have their furniture and possessions professionally packed and moved to their new Beechcroft home and have the services of a handyman for a morning or afternoon to help with small jobs such as fitting curtain rails, putting up pictures, rearranging furniture or assembling flat packs.

Homebuyers Chris and Jeanette Propert had already had an offer on their former home when they chose a Beechcroft apartment at Cotswold Gate but really appreciated the Manage Your Move service:

What people say...

Beechcroft is not one of the retirement developers who charge exit fees or deferred management fees if a homeowner decides to resell – and has never done so.  All Beechcroft homes can be resold on the open market through estate agents of your choice – as long as the new buyers fit the age criteria. 

Service charges ensure that each development is maintained to a high standard – and this is just one of the things that make Beechcroft developments popular on the resale market and help Beechcroft homes retain and gain value over the years.  The service charges cover the cost of the estate management, including the cleaning and maintenance of the communal areas and the upkeep of the landscaped setting as well as many of the things that homeowners pay in their own home – such as the upkeep of private gardens, buildings insurance, external window cleaning and the maintenance of guttering.  A ‘reserve fund’ is set aside for future works at the development and owners have the peace of mind that comes with knowing an estate manager is on hand to offer help and advice and to keep an eye on properties whilst owners are away.  Beechcroft, in producing a ‘Downsize Your Cost of Living’ leaflet revealed that its homeowners could save over £3,000 a year by living in a Beechcroft home and paying service charges rather than paying the cost of individual items. 

Beechcroft has a varied portfolio of houses and apartments – some are the result of careful renovation and conversion of period properties and some are newly built, designed to complement the setting and local architectural styles.  The award-winning communal gardens are an integral part of the design process rather than being an afterthought and include a variety of colours, textures and heights of plants to provide interest throughout the seasons and to mature with time.  Homeowners are able to help with the gardening if they wish as long as the original planting scheme is not compromised.  Well-behaved pets are always welcome at Beechcroft developments and owners often get together for dog walking or help out with pet sitting.  Gill Smith, who bought at Castle Gardens, Watlington was delighted to find a dog-friendly retirement development: 

What people say...

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