Nearly half of those thinking of moving home within the next three years plan to downsize, according to a survey from Lloyds Bank.

Downsizing was given as the single most popular factor for moving, with 46% of respondents saying they intend to move to a smaller property with their next move.

The bank said that the popularity of downsizing has grown in recent years, buoyed by the anticipated returns. Detached home owners could be in line for an average windfall of around £117,230 if they move to a semi-detached house, for example.

Unsurprisingly, house prices in the capital mean that London homeowners could make the most from downsizing, as they stand to free up an average of £201,052 from trading down from a detached to a semi-detached home.

Downsizers from the South West saw the highest rise over the last 10 years in monetary terms in what they could gain from moving from a detached to a semi-detached home, with the average price difference increasing by 19% from £109,687 to £130,654.

Downsizing in your fifties

The average age for a downsizer is just 53, at which point the greatest number (37%) of downsizers had lived in their home between 11 and 20 years.

The main reason is to move somewhere more suitable (53%), followed by reducing bills or freeing up equity (both 39%). Almost a third downsize to provide extra cash for retirement (31%).

A fifth say that they are downsizing earlier than they had anticipated, due to health reasons, changes in relationship status or a need to live closer to local amenities.

The vast majority (72%) of downsizers said they expected to profit from their move, with 35% planning to reinvest their additional capital in a new property.

Mike Songer, mortgage director with Lloyds Bank, said: “People are increasingly looking to downsize their home because their circumstances or priorities have changed. Whilst financial gain may not be the main driver for those looking to trade down their property it is clearly a factor, with three quarters of downsizers expecting to profit from such a move.

“There are definitely financial benefits to be gained from trading down, with an average potential windfall of £117,230 when moving from a detached home to a semi-detached house. Downsizing is also healthy for the market, as it helps keep it moving and frees up larger properties which could be perfect for young families about to take their next step up the property ladder.”