HomeBuyingCosts Guide
Downsizing and Moving Costs in the UK
Written and reviewed by James Whitfield · Updated 2026-02-17 · 6 min read
Checked against 2026/27 HMRC, Revenue Scotland & HM Land Registry rates · Editorial standards · Methodology
A planning guide for households balancing equity release goals against tax, fees and timing constraints.
Key takeaways
- Estate agent fees are usually the biggest cost when selling — 1–2% of the sale price plus VAT.
- You still pay stamp duty on the new home: £5,000 on a £300,000 purchase for a home mover.1
- A £500,000-to-£300,000 downsize costs around £16,000–£17,000 all in.
- If you buy the new home before selling the old one, watch the 5% surcharge — it's reclaimable within 36 months.4
Downsizing from a £500,000 house to a £300,000 one doesn't release £200,000 in cash — moving costs take a bite first. Between estate agent fees, stamp duty on the new home, two sets of legal fees and removals, a typical move like this costs around £16,000–£17,000, leaving roughly £183,000 of usable equity.1
This guide sets out both sides of a downsizing move — the costs of selling your current home and buying the smaller one — with a full worked example so you can see the real net figure before you commit. Your main home is exempt from capital gains tax, so that's not part of the picture here.
Worked examples — home mover typical fees
| Price | England/NI tax | Scotland tax | Wales tax |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
| £750,000 | £27,500 | £48,350 | £36,750 |
Downsizing is not just sale price minus purchase price
The tempting sum is simple: sell for £500,000, buy for £300,000, pocket £200,000. The real figure is lower, because moving home triggers a stack of one-off costs on both the sale and the purchase.
On the sale side you pay estate agent commission, an Energy Performance Certificate and conveyancing. On the purchase side you pay stamp duty, conveyancing, searches, a Land Registry fee and usually a survey. Removals sit across both. None of these is huge on its own, but together they routinely reach £16,000 or more on a mid-value move.
The single largest line is almost always the estate agent's fee. High-street agents typically charge 1% to 2% of the sale price plus VAT, so on a £500,000 sale that's £6,000 to £12,000 before anything else. It's also the most negotiable cost in the whole move, which makes it the first place to push.
Downsizing from £500,000 to £300,000 — where the money goes
This worked example assumes both homes are owned outright, sold and bought in a single chain, with no onward mortgage. Adjust the estate agent rate and fees to your own quotes.
| Item | Amount | Notes |
|---|---|---|
| Estate agent fee (1.25% + VAT on £500,000) | £7,500 | The biggest and most negotiable cost |
| Sale conveyancing | £900 | Selling is simpler than buying |
| Energy Performance Certificate | £100 | Required to market the property |
| Stamp duty on £300,000 purchase | £5,000 | Home mover; a first-time buyer would pay £01 |
| Purchase conveyancing + searches | £1,500 | Legal fee plus searches and disbursements |
| Land Registry fee | £150 | Electronic lodgement, £300,000 band3 |
| Survey | £500 | RICS Level 2 on the new home |
| Removals | £1,000 | Local move |
| Total moving costs | £16,650 |
Gross equity gap is £200,000 (£500,000 − £300,000). After £16,650 of moving costs, the net cash released is about £183,350.1
So the headline £200,000 becomes roughly £183,000 once the move is paid for. On higher-value homes the estate agent fee scales with the sale price, so the gap between gross and net widens.
Stamp duty when you downsize
There's no downsizer relief — you pay standard stamp duty on the new home like any other mover. The consolation is that a smaller home means a smaller tax bill: £5,000 on £300,000 rather than £15,000 on £500,000.1
The trap is timing. If your purchase completes before your sale, you'll briefly own two homes on completion day and pay the 5% additional-property surcharge — an extra £15,000 on a £300,000 purchase. You can reclaim it once your old home sells, provided that happens within 36 months, but you need the cash available on the day.4
In a normal chain where sale and purchase complete simultaneously, the surcharge doesn't apply. It only bites when the timings pull apart, which is worth planning for if your buyer is slower than your seller.
Common mistakes when downsizing
Budgeting on sale-minus-purchase and forgetting the costs. The estate agent fee alone can be £7,500 or more; ignoring it overstates your released equity by a wide margin.
Not negotiating the agent's commission. It's the most flexible cost in the move — a 0.5% reduction on a £500,000 sale is £3,000 back in your pocket.
Assuming stamp duty doesn't apply because you're 'trading down'. It does. There's no relief for downsizers, only the smaller bill that comes with a lower price.
Ignoring the surcharge risk if you complete the purchase before the sale. Model it, keep the cash back, and reclaim it later if it applies.
Use the calculator for this topic
Frequently asked questions
How much does it cost to downsize?+
For a typical move from a £500,000 home to a £300,000 one, budget around £16,000–£17,000 all in: estate agent fees, stamp duty on the new home, two sets of conveyancing, searches, Land Registry, survey and removals. The estate agent fee is usually the largest single cost.
Do you pay stamp duty when downsizing?+
Yes. You pay standard stamp duty on the home you buy — there's no relief for downsizers. On a £300,000 purchase a home mover pays £5,000. The upside is that a cheaper home means a smaller tax bill than the one you may have paid on your current property.1
How much equity will I actually release?+
Take the price gap between the two homes and subtract your total moving costs. Downsizing from £500,000 to £300,000 gives a £200,000 gross gap, but after roughly £16,650 of costs the net cash released is about £183,350.
Is my main home subject to capital gains tax when I sell?+
No. Your only or main residence qualifies for private residence relief, so there's normally no capital gains tax to pay when you sell it. CGT can apply to second homes and buy-to-lets, but not to the family home you're downsizing from.
What if I buy the smaller home before I've sold?+
You'll temporarily own two properties on completion day and pay the 5% additional-property surcharge — £15,000 on a £300,000 purchase. You can reclaim it once your previous main home sells within 36 months, but you need the cash on completion day.4
Can I reduce the biggest cost, the estate agent fee?+
Yes. Estate agent commission is negotiable and varies from around 1% to 2% plus VAT. On a £500,000 sale, trimming the rate by half a percent saves £3,000. Online agents charge a lower fixed fee but offer a different service — weigh the saving against the support you'll get.
Sources & references
OfficialThe figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.
- GOV.UK — Stamp Duty Land Tax: residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates Current band-by-band residential SDLT rates.
- GOV.UK — Buying or selling your home www.gov.uk/buy-sell-your-home Overview of the conveyancing, survey and completion process.
- GOV.UK — HM Land Registry registration services fees www.gov.uk/guidance/hm-land-registry-registration-services-fees Scale 1 registration fees by price band (postal and electronic).
- GOV.UK — Higher rates for additional properties www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property The 5% additional-property surcharge and 36-month refund rules.
- Revenue Scotland — LBTT residential property revenue.scot/taxes/land-buildings-transaction-tax/residential-property Scottish LBTT rates and first-time buyer relief.
- Welsh Revenue Authority — Land Transaction Tax rates and bands www.gov.wales/land-transaction-tax-rates-and-bands Welsh LTT main and higher residential rates.
Verified against published UK government guidance. See also Methodology and Editorial standards.
Related guides
Written and reviewed by James Whitfield and the HomeBuyingCosts editorial team.
Stamp duty, LBTT and LTT figures are checked against GOV.UK, Revenue Scotland and GOV.WALES. We explain every cost of buying a home in plain English, with worked examples. Editorial standards · About us