Downsize now or wait?

[ohwell02]

My relative who is alone says her current abode is costing a lot in heating and C Tax which would lower her costs by c £100 a month at the very least if she moved. She will eventually have to do this in the next 5 to 10 years so is it better to wait or do it now?

You don't say how old/fit your relative is. But from family experience (the question of IHT aside) if downsizing is going to be necessary, best to do it sooner rather than later. As people get older and have less energy, all the faff, hassle and stress of moving - and having to get rid of a lot of stuff - can just seem too daunting to contemplate.

She’ll be better off financially doing it now rather than when property prices drop.

Moving house costs alot of money too eg hiring van to move possessions. If you own property and buy again there will be solicitor fees, stamp duty. If you rent there are fees too. The alternative would be for your relative to rent out a spare room. If your relative lives in social housing they can request to down size to smaller property. Bills you can decrease by shopping around for the cheapest deals. Gas and electric you can decrease using better insulation and some companies offer free or reduced insulation grants.