Researchers took the average asking price for a range of properties- from one beds right up to five-bedroom homes – and calculated the price difference between each.
The study by PensionBee also took into account the average of these figures to calculate the typical amount of money released by downsizing in each location.
It revealed London was the place where the highest amount of money, on average, could be released by downsizing. In fact, the typical amount of money made by downsizers here was £417,000.
Brighton and Hove was in second place with downsizers pocketing an average of £156,000 while Bristol took the third spot, with the typical amount made by people moving to a smaller home was £148,000.
Romi Savova, CEO at PensionBee, said: “Our research shows the considerable amount of money that could be tied up in your home. Given the stamp duty holiday there’s arguably been no better time to downsize, especially if you’re approaching retirement and looking to grow your income.
“Increasing evidence suggests that the majority of us aren’t saving enough for retirement, and where it might not be possible to make larger pension contributions, property can help bridge the gap.
“As our data indicates downsizing could release a significant sum, right across the UK, so it’s something that could be worth considering if you want to boost your retirement fund.”
Average money released (source: PensionBee)
| Rank | Town/City | Average Money Released by Downsizing |
| 1 | London | £417,881 |
| 2 | Brighton and Hove | £156,636 |
| 3 | Bristol | £148,609 |
| 4 | Bolton | £133,619 |
| 5 | Bournemouth | £131,518 |
| 6 | Aberdeen | £130,814 |
| 7 | Edinburgh | £115,693 |
| 8 | Leeds | £114,006 |
| 9 | Sheffield | £105,474 |
| 10 | Portsmouth | £104,291 |
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