No downsides to downsizing

DEVELOPERS, estate agents and anybody hoping to sell their homes or buy new ones soon are bracing themselves for possible property tax changes in next month's Budget, yet it's last year's Budget that is driving one of the strongest property trends: downsizing.

- By Deborah Stone

SAFE AS HOUSES: The welcoming McCarthy and Stone Wheatley Place bar and lounge

Last year's changes to inheritance tax mean that from April 2027 unused pension funds could be liable to 40% tax, so some people have brought forward their downsizing plans to reduce the value of assets liable to tax when they die.

It's not the only reason, of course. Most simply want access to the equity in their homes and some want the social benefits of a retirement village.

Unfortunately, the property market slowdown caused partly by fears over the Budget means there's little chance of moving quickly unless you use part exchange offers at new developments and retirement villages.