Downsizing costs: stamp duty, fees and removals

Last checked November 2026. Offers and rules change: confirm with the provider before you rely on them.

Downsizing can free up money and cut your bills, but moving home has its own costs: estate agent and legal fees, a property tax on the home you buy, removals, and the expense of making the new place yours. Add them up before you decide, because together they often run well into five figures.

The costs at a glance

Cost	When you pay	What to know
Estate agent	On selling	Usually a percentage of the sale price plus VAT, or a fixed fee. Negotiable.
Solicitor or conveyancer	Sale and purchase	Two sets of legal work, plus searches and Land Registry fees on the purchase.
Property tax	On buying	Stamp Duty Land Tax, LBTT or LTT depending on the nation. See below.
Survey	Before buying	Optional but wise, especially for older properties.
Removals and storage	Moving day	Depends on volume, distance, access and whether you want packing done.
Setting up the new home	After moving	Flooring, curtains, smaller furniture, adaptations, mail redirection.

We have not given typical prices, because they vary widely by area and property. Get written quotes for each line before you commit.

Property tax when you buy

There is no special exemption for downsizers or for older buyers. The tax you pay depends on where the home you are buying is.

England and Northern Ireland: Stamp Duty Land Tax (SDLT). Use the official SDLT calculator or see the current rates on GOV.UK.
Scotland: Land and Buildings Transaction Tax (LBTT). Use the Revenue Scotland calculator.
Wales: Land Transaction Tax (LTT). Use the Welsh Government calculator.

All three work in bands, a little like income tax: nothing on the first slice of the price, then a rising percentage on each slice above it. The bands and rates differ between the nations and have changed several times in recent years, so use the calculator on the day rather than a figure you remember.

Watch out: If you complete the purchase of your new home before selling the old one, you may be charged the higher rate that applies to additional properties. It can usually be reclaimed if the old home is sold within a set period, but you need the cash to pay it up front. Ask your solicitor before agreeing dates.

Your solicitor normally works out the tax, files the return and pays it from the completion money. There is usually no tax on the profit from selling your only or main home, but check with your solicitor or GOV.UK if you have let it out, used part of it only for business, or it has large grounds.

Selling costs

Estate agents. Ask three agents to value the home. Compare what they charge, what is included (photographs, floor plan, accompanied viewings), how long you are tied in and whether the fee is due if you find a buyer yourself. The highest valuation is not always the most honest one.
Legal fees. Ask for a fixed quote that lists every extra. If you are buying leasehold, including most retirement housing, expect additional charges for dealing with the management company.

In Scotland the process is different: the seller normally pays for a Home Report before marketing, and solicitors often act as the estate agent too.

Removals and clearing out

Get at least three quotes after a visit or video survey, not a guess over the phone. Check what insurance is included and whether the firm belongs to a trade association.
A full packing service costs more but saves a great deal of lifting. Ask whether they will also unpack and take the boxes away.
For things you no longer need: offer them to family first, then sell, donate or recycle. Many charities collect furniture free. See charity shops and second-hand and buying and selling on marketplaces.

The running costs after you move

Smaller usually means cheaper to heat and a lower Council Tax band, but check rather than assume:

Look up the Council Tax band and the Energy Performance Certificate of the new home.
In a flat, add the service charge and any ground rent.
Will you still need a car? See giving up the car and check the local buses with your free bus pass.
Money released from the sale counts as savings, which can reduce Pension Credit and other means-tested help. Ask Citizens Advice before you move.

The emotional side

A house holds decades of family life, and leaving it is rarely just a financial decision. People who have done it tend to give the same advice:

Start early and go slowly. Sorting one cupboard or one room a week, months ahead, is far kinder than a frantic fortnight.
Keep the meaning, not the object. Photograph things you cannot keep. A digital photo frame can hold a house full of memories.
Choose the place, not just the property. Being near friends, a GP, shops and a bus stop matters more in the long run than an extra bedroom.

Is it worth it?

Write down the expected sale price, take off every cost above, then the price of the new home. What is left is the real amount released. Compare that, and the lower running costs, with the alternatives: staying put with home adaptations, or taking in a lodger. MoneyHelper has impartial guides to the costs of buying and selling.

Common questions

Do over-60s get a discount on stamp duty?

No. There is no age-related relief on SDLT, LBTT or LTT.

Can I give the money I release to my children?

You can, but gifts can have inheritance tax consequences and may be looked at if you later need means-tested care or benefits. Take advice from a solicitor first.

Should I sell first or buy first?

Most people do both on the same day. Selling first and renting for a while removes the pressure and puts you in a strong position as a buyer, at the cost of moving twice.