To get advice on what to do about DD still at home

[Downtownonsaturdaynight]

She is 39 and lives with myself and DH. My other DD has just moved out with her partner who is paying the mortgage on a flat. Without him she would also be home as we live in a very expensive part of the UK (Near London) My DD who still is with us, works but doesn't earn enough to move out. She has chronic illnesses but has managed to accumulate a large amount of savings (60K).
Myself and DH are concerned about the inheritance tax. My friends keep saying we should downsize from our 3 bedroom house and move into a smaller property with DD, but can't see DD wanting to do this as she works nearby and is desperate to be independent.
Is it worth us downsizing and using that money, help DD to get a 1 bed flat or should we just stay where we are?

My other DD is financially supported by her partner so she has a benefit there and she has has had a lot of support by us. She also hasn't contributed as much around the house as DD at home has.
@Downtownonsaturdaynight What do you mean? Financially? In tasks? When they were both living there, or do you think that other dd should be helping out and paying when she doesn't live there?
Starting to sound like you have a clear favourite child and are just looking for ways to give your golden child lots of money.
Do you HONESTLY think you're being a fair parent?

I disagree. You should gift your 2 daughters equally. I can’t imagine giving one of my children thousands of pounds and nothing to the other. Especially as simply having a partner does not mean your other daughter is financially secure. im baffled that you would consider this fair. It would certainly breed resentment and hurt from the dd you give nothing to while her sister gets thousands.

How old is your other daughter?

If you want to downsize then you should downsize. It is time for your DD to leave home. How much would a flat be?

I’d it possible for her to buy in a cheaper area and use her 60k as a deposit or are you able to gift both your DC some money?

Could she afford shared ownership?

We have two DC and we are downsizing to give our adult DC some money. We also need a smaller mortgage and accessible accommodation. We're doing it now at 59/62 so we're settled. I've been unwell so I want to ensure we get the 7 year gift relief.

They will both get the same although one is a student.
We are commutable to London and house prices are bonkers here too. A 1 bed flat would be £180k+.

You mentioned OP your daughter would like to move out. How will you manage if you need care? Have you agreed to go into a home? I had both my parents live with me, it nearly killed me. Have those conversations now.