Home mover activity hits record low but buyers are getting younger
The average age of a UK home mover has dropped but the number of actual moves has hit a record low, Halifax claims.
The lender’s 2023 Home Mover Review suggests the typical age for a buyer to get on the property ladder is now 39, a year younger than 12 months ago and two years younger than in 2013.
Its research found the number of home moves recorded in the first half of 2023 is 112,459 – the lowest number ever recorded by the Halifax Home Mover Review and is down almost 30% on last year.
The previous low was in the first half of 2020, when 114,020 home moves completed – caused by the market shutting down due to the pandemic.
The falling age of movers may point to the ‘race for space’ driven by more businesses permanently adopting homeworking and younger homeowners looking for homes that better fit with their lifestyles, Halifax suggested.
These buyers now have greater flexibility in location, giving them the chance to buy homes that might otherwise have been beyond their budgets when a daily commute had to be considered.
The fall could also suggest fewer older movers, who are instead choosing to extend homes rather than move or delaying sales to maximise their equity before downsizing, Halifax suggests.
Movers in London are, on average, youngest, at 38, while those in Northern Ireland are the oldest at 41, according to the research.
Meanwhile, the average price paid by people moving home in the UK is £428,647, up 10% on last year, according to the analysis, double what it was in 2013.
Detached houses were the most popular type of property among people moving homes in the past 12 months, Halifax said, with 32% of sales.
Semi-detached homes accounted for 28% of UK sales in the last year, followed by terraced with 21%, flats with 12% and bungalows at 7% making up the rest, the report shows.
Kim Kinnaird, mortgages director for Halifax, said:
“The growing popularity of detached homes reflects a desire or need for more space.
“With many businesses continuing to embrace hybrid working, we’ve seen people take the opportunity to find homes that better suit their lifestyles in locations that might not have been practical with a daily commute to consider.
“It is also true that detached homes often come as a later step on the housing ladder for many and, when the opportunity arises, families will choose a home that gives them space to settle and grow over a longer period – a ‘forever home’, which will be a more flexible space for their changing needs and lifestyles.
“In contrast, the falling popularity of terraced homes reflects how they are increasingly seen as a first rung on the housing ladder.
“The relatively poor energy efficiency of many older terraced homes could also be a factor when buyers are looking at household running costs as energy costs look set to remain high.”
Commenting on the report, Nigel Bishop, founder of Recoco Property Search, said:
“The vast majority of our clients seek the ultimate level of privacy which is why detached houses are extremely sought-after.
“Buyers who are moving out of the capital are particularly driven to finally own a home that offers more space and freedom without any interference from immediate neighbours.
“Due to the popularity of detached properties, buyers are often facing a competitive house hunt with sellers having the upper hand when it comes to price negotiations.”
Kindly shared by Estate Agent Today
Main article photo courtesy of Pixabay
