When the kids move out, the bank account could be filled up, according to recent data, which suggests that owners of a five-bedroom apartment could free up half a million euros by moving into a three-bedroom apartment instead.

New analysis from UK property website Rightmove highlights cash equity release opportunities for those looking to move to a smaller home before moving costs such as stamp duty and property transfer fees are incurred.

On average, owners of larger properties outside London could free up £498,687 in cash by moving from a five-bedroom home to a three-bedroom home, based on the current average price for this type of property.

Tim Bannister, property expert at Rightmove, says: “Downsizing is a sensitive issue for many homeowners, as emotional ties and the inconvenience of moving often prevent them from selling their family home. However, couples whose children are out of the house may overlook the significant benefits of downsizing, such as lower energy bills and more money from purchasing a smaller home that can still cover moving costs through the residual income. By moving from a five-bedroom home to a three-bedroom home, homeowners could still keep spare bedrooms for guests and free up an average of half a million dollars in cash for other purposes before moving costs are incurred.”

Five-bedroom properties have seen a significant increase in price over the last decade, with homeowners who bought their property in 2014 seeing an average increase in value of 36 percent.

Those moving to London who own the property outright could release the largest amount in pure monetary terms due to the higher cost of housing in the capital, with potential equity release of up to £1,062,087.

Prospective movers from the North East will benefit the most proportionally, receiving 65% of the value of their five-bedroom property back, the highest percentage of any region. At the lower end of the regional scale, movers in the East Midlands, South West and East of England could unlock 58% of the value of their five-bedroom property, which is still a significant monetary return.

For couples whose children have left home, not only the cash release from buying a home could be an incentive to move to a smaller home, but also the significant savings in energy costs.

Rightmove’s analysis shows that by moving from a less energy efficient EPC E rated five bedroom home to a more energy efficient EPC C rated three bedroom home, the owner could save an average of £3,806 per year on energy costs.

If 150,000 larger households took this step, these downsizing measures could save them over half a billion pounds a year in energy costs that they could potentially spend elsewhere.

James Linder, Regional Sales Director, Leaders Romans Group, says: “We have seen a trend towards downsizing among homeowners, particularly in towns with detached houses and larger metropolitan areas. Many people move to a smaller home to release equity, often using the considerable funds to help their children get into the property market. In addition, the potential savings on energy bills, council tax and maintenance costs are significant. On energy costs alone, homeowners can save a significant amount annually by moving. Lower council tax and lower maintenance costs make downsizing even more attractive.

“We are also experiencing a demographic shift: Compared to the traditional age group of 70- to 80-year-olds, more people in their 60s are choosing to downsize. This younger group is being proactive in securing their financial future and reducing their monthly costs.”

Regions and average potential cash return from staff reductions