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Wow!! thank you all for your comments and suggestions,they are most welcome.
Boxtops,the reason I am thinking of down sizing is because I really don't need a three bed house now, and by freeing it up would give a family with children a chance to live in a lovely house. I do love my house and it will upset me very much to leave here, but I know deep in my heart I would be doing the right thing.
Evian Baby, yes my kids would help me, but there is a lot to do and they both work hard and don't get a lot of free time, and of course have their own families.But yes they would help.
Mandy22, yes I would be nearer to my daughter, but further away from my son. At the moment I live half way between the two. I agree a bungalow would be easier and cheaper to run than my house. I would of course still keep my friends here, its not too far away to visit,and of course there would be new people to get to know. The bungalow is only one of six in the road, and the vicarage. The church is right opposite along with the church yard. ( no problems there, these neighbours are quiet and cause no trouble)
Eddie51, yes my council have an incentive to move scheme too.You get so much for each bedroom you give up (which would just be one) and if you give up an entrance door(ie, if you move into a flat which only has one door in, and no back door into a garden). Also my council does decorate before re-letting but I would be going to a different council, so not sure how they work, although I would think they all run much the same.
So many questions, I am feeling totally confused. And all the packing, now that does daunt me, although I have been gradually de-cluttering in anticipation of this; and I would have to get rid of such a lot of things. It would be a lot easier to decide if I wasn't so happy here in my house. Oh Dear!!