People free up the most by downsizing in London, Brighton and Bristol

People downsizing by a bedroom typically save the most in London, averaging a saving of £417,881, PensionBee research shows.

Coming in second was Brighton and Hove, with a saving of £156,636, while in third was Bristol, at £148,609.

The research analysed the price gap between 1, 2, 3, 4 and 5 bedroom homes in areas – with the result being the average gap.

Romi Savova, chief executive 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.”