Can You Part Exchange When Downsizing House?
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Content Written By: Raphael Kaye - Last Updated: 16/04/2025
We explore everything you need to know about downsizing, including whether there are 'part exchange house downsize' schemes...
Downsizing your house is generally something people associate with the more mature generation – you know the kids have left home and now there’s no need for all the spare room.
Circumstances change, and downsizing can be an appealing option to free up some cash for those extra bedrooms you don't use. It's becoming increasingly popular mainly due to the increased Bank of England Interest rates, according to The Guardian with their article on "Why more people in the UK are downsizing home" published in April 2024.
And with it becoming increasingly popular for people of all ages, not everyone who downsizes is ready for that Bungalow. A portion of people with the new build incentives on offer such as stamp duty contributions and free upgrades, might be thinking, can I part exchange my house for a cheaper one?
Being a part exchange would mean that you're buying a new build home, so you might be wondering if any of the new build companies will let you do so with a more expensive property.
We’re here to help answer all your questions on downsizing, including the pros and cons, AND whether or not you can part exchange when downsizing house…
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What does downsizing house mean?
When people talk about downsizing house they normally mean moving to a smaller or less valuable property and it’s generally associated with those who are retired or whose children have left home.
However, this doesn’t mean downsizing house is ‘exclusive’ to these situations – for example, it maybe you’re moving family home but have realised you don’t need all the space you have.
Or, maybe you’re wanting to move to a ‘better’ location, meaning you will get less house for your money and so need to downsize.
What are the pros and cons of downsizing?
With anything in life comes pros and cons, and downsizing is no different.
We’ve made a list so you can be aware of these ‘good and bad bits’ when it comes to downsizing house…
| Pros | Cons |
|---|---|
| A smaller property = easier to manage | Still have the BIG cost of moving house (we're thinking lawyers, surveyors, Stamp Duty, estate agent fees, all of the above) |
| Gives you the opportunity to move to a 'better' location | Smaller doesn't always equal cheaper |
| Smaller house = smaller bills = more money to spend on YOU | Smaller = less space (a fairly obvious one, we know) |
| Equity release | May require long term lifestyle changes |
Worth Considering: Contradicting what the Guardian mentioned in their earlier article, according to research by Pegasus in an article by The Intermediary the main barriers to downsizing include the hassle of moving (37%), Stamp Duty (35%) & lack of suitable housing (26%).
This isn't a surprise, and with that survey being conducted in February 2024 there has been a further rise in Stamp Duty, which will continue stagnating the downsizing market and likely increase that percentage.
Can you part exchange when downsizing house?
This will depend upon the individual building development company you have chosen but as a general statement, you won’t be able to part exchange house to downsize.
Most part exchange schemes will only make you an offer if your property is 65-75% of the value of the new build.
If, of course, your property costs less than your downsized new build then there isn’t really anything standing in your way (unless for whatever reason the developer decides your property isn’t suitable).
Some housing developers, such as Miller homes, have a ‘part exchange house downsize’ scheme, but these aren’t all that they seem…
When reading the fine print, it states that when downsizing house using their part exchange scheme, your house needs to be ‘eligible’ to be able to be considered for their scheme, which is down to their opinion.
It also states that their offer can be withdrawn without notice, leaving you without a buyer – not the best place to be in when you have a house to sell before you can buy your new one!
Let's take a look at the main new house builders in the UK and what their part exchange T&Cs say.
| Part Exchange Company | Part Exchange Scheme Details | Summary | Part Exchange Downsize Scheme? |
|---|---|---|---|
| Miller Homes | https://www.millerhomes.co.uk/our-offers/downsize.aspxf | Miller Homes do offer a part exchange downsize option, but it's eligibility is somewhat ambiguous stating "Your present home must meet certain basic qualifying criteria to be eligible for Downsize." without any definition of what that is. | Yes |
| Barratt Developments | https://www.barratthomes.co.uk/offers/part-exchange/part-exchange-terms-and-conditions/ | Barrat's terms clearly state: "Part Exchange will only be available where the existing property being traded in is no more than 80% of the selling price of the plot you are considering purchasing, up to a maximum value of £500,000." | No |
| Persimmons | https://www.persimmonhomes.com/buying-with-us/downsizing-your-home | Interestingly, since we last wrote this article Persimmon now appear to offer this. As you will see on their downsizing page however, there is very little information around the terms and conditions. | Yes |
| Taylor Wimpey | https://www.taylorwimpey.co.uk/ways-to-buy/part-exchange | The terms and conditions of Taylor Wimpey's part exchange scheme is tucked at the bottom of the page. Within the terms it states: "Your existing home must be 70% or less than the value of the new home you are considering purchasing." | No |
| Bellway | https://www.bellway.co.uk/buying-with-bellway/part-exchange | Hidden in the Frequently Asked Question section of the page under "What criteria do I need to meet", Bellway state: "Part Exchange will only be available where the existing home being traded is at least 30% less in value than the net price of the new Bellway home being purchased." | No |
Is part exchange on a house worth it?
This depends on why you’re part exchanging, whether you’re doing it to have no chain and a faster sale or whether you’re doing it to avoid the open market and find a buyer more easily (hopefully!)
Although on the surface part exchange sounds like a good idea, it’s important to remember a developer wouldn’t be interested in it if there isn’t something in it for them…
It's also worth considering what these new build companies do with your property once they have exchanged Although we don't directly deal with any of them ourselves, there are competitors in our space that actually purchase them on behalf of the new build companies, meaning that all you are realistically doing is selling to a cash buyer, but with additional margin.
One step in part exchange is the developer having your house valued by three individuals so they can make you an offer based on these valuations.
During this process, you’re given no indication of how this value has been determined and they will generally undervalue your property by a fair amount.
Part exchange schemes also state that your house must be in what they deem to be ‘good’ condition and that not all houses are eligible for the scheme – this is bad news for those who want to do a part exchange house downsize as your current property shouldn’t be more than 65-75% of the value of the new build.
If you are given an offer for your property through a part exchange scheme, the offer is still subject to a survey and, in some terms of agreement, it states that the developer can withdraw their offer at any point without notice, leaving you stuck with no buyer and at no warning.
Part exchange schemes are also not open to doing a deal on a property in just any location – in other words, if it doesn’t fit in with them, they don’t want it.
Tips & tricks to downsizing
One of the best ways to prepare yourself for downsizing is to do a HUGE declutter, as there’s no possible way of being able to fit all the same stuff in a smaller space.
A big declutter session can be difficult, as it’s not something that many of us do that often. To help you out, we’ve made a list of some of our best top tips when it comes to decluttering, so you can say ‘out with the old and in with the new:
1. Make a list of all your belongings
This way you can see everything you have all in one place and then you can start ‘ticking and crossing’ what you want and have room to take with you
2. One room at a time
tackling one room at a time means that each room will get completed fully, rather than doing little bits here and there, ending in no room being fully decluttered from top to bottom
3. Keep, donate, store/skip
whilst decluttering, it’s useful for you to make three piles; one for keep; one for donate; and one for storage or skip. This way you know the purpose of each pile you’re making and will help you to easily identify what you are wanting to take with you
4. Bye bye old bills
it’s important to make sure you get rid of as much rubbish as possible, including old receipts, bank statements, and bits of paper you no longer need, as this is only going to take up room and storage space
5. Avoid renting a storage unit
when downsizing house, you may feel it’s a good idea to rent a storage unit for a little while until you’re settled and then find a home for the items in storage. However, often, there ends up being no real space for the items in storage, and so they end up constantly renting the unit for years on end
6. Give yourself time
make sure you begin decluttering a few months before your completion date. Not decluttering soon enough is only going to make you need to rush and put you under pressure, meaning you may regret some of the items you’ve thrown out
7. Get out the tape measure
make sure you measure the furniture you’re wanting to take with you. This way you can make sure when viewing your new home, you have enough space for the things you want
8. Wait before buying
you may be full of new ideas for furniture for when you get to your new house, but it’s a good idea to wait until you get there and are settled, before you start picking out new sofas! Otherwise, you may end up buying too much furniture, with nowhere to put it
9. Remember the end goal
when downsizing house, it’s easy to lose sight of the reason you’re downsizing in the first place. For example, if you’re downsizing to save money, you don’t want to get caught up in buying lots of new furniture for your new house and end up spending most of the money you were planning on saving
We offer a great alternative to part exchange
Not eligible for a part exchange due to your home being more valuable than the one you're looking to move to?
Here at The Property Buying Company we can offer the perfect solution. Our service gives you all the speed and ease of a part exchange deal, but without being tied to a particular new build company because of their terms.
We pride ourselves on being a guaranteed buyer who can buy your house for CASH and complete FAST – we have been known to complete in as little as 7 days (not a typo, we’re just good at quick house sales!)
Unlike a part exchange scheme, our offer isn’t subject to a survey AND your house can be in any location and any condition, so don’t worry about us being put off by a long list of repairs!
We may not offer the full market value, but we will cover all your legal fees and are happy to get our hands dirty to help with removals – just our way of saying thank you.
Why not give us a call or fill in our online form today for a no-obligation cash offer to sell your house FAST, to help you on your way in your downsizing house journey!
Frequently Asked Questions
Will I get full market value with part exchange?
No, in fact, they pay a pretty low rate, even compared to cash buyers like us.
You're generally looking at 65-75% depending on the circumstances. You may, however, be able to offset this slightly by negotiating on the price of the new build you are purchasing.
How long does a part exchange usually take?
It varies depending on when the new build is ready and the complexity of your property, but the standard time they all tend to stick to is 4-6 weeks.
Are there costs to a part exchange?
Yes, whilst you don't have to pay an estate agent fee, unlike a cash buyer, they won't cover the costs of your solicitors.
It's always worth asking if they can contribute towards these, as some companies do offer incentives.
What happens if my home is worth more than the property I want to buy?
As we mentioned earlier, it essentially limits your pool of new build developers that you can purchase from.
It is still possible, but there are very few companies that will offer a part-exchange downsize scheme.
What are the alternatives to part exchange when downsizing?
If you aren't eligible for part exchange then you have a few options available:
Estate agent: You'll achieve a much higher value but the timeline of sale is much longer
Auction: Can be quicker but the outcome is variable and it may not sell
Cash buyers: Companies like ourselves can complete quickly, with no fees and likely achieve more than part exchange.
Edit Log
16/04/2025 - Content updated and edited by Raphael Kaye
16/04/2025 - Content updated in line with Editorial Guidelines (Reviewed by Mathew McCorry)
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