New research from over-50s property specialist Regency Living suggests that downsizing to a park home could offer a route to financial freedom in later life, eliminating debt and unlocking equity for a more secure retirement.
According to the analysis, average household debt (excluding mortgages) has risen from £9,423 in 2015 to £17,174 in 2024 – an 82.3% increase.
For households with mortgages, the average debt now stands at £211,040, up 28.6% over the same period.
A growing number of older homeowners are carrying this financial burden into retirement, with a third of mortgage holders telling LV they don’t expect to clear their mortgage before age 65.
CLEAR DEBT ENTIRELY
However, with the average UK house now worth £377,182 (April 2025), and the typical park home costing £168,027, Regency Living estimates that downsizers could release around £209,155 in equity – enough to clear their outstanding debt entirely.
Tim Simmons, Sales and Marketing Director at Regency Living, says: “Downsizing to a park home is an increasingly popular choice for retirees – not just for the lifestyle benefits and sense of community, but for the life-changing financial impact it can have.
“Many homeowners approaching retirement have built up substantial equity, and by releasing it through downsizing, they can clear debts, including their mortgage, and enjoy a more comfortable retirement.
“What’s more, part-exchange schemes mean they can make the move without the stress of the open market, and license-to-occupy agreements make the process even simpler.”
