Post-lockdown return to school boosts the property market with family homes in high demand

Zoopla, the UK’s most comprehensive property destination, has revealed that post-lockdown buyer demand has increased by 25% in the two months since schools reopened in March compared to the previous 2 months.

Key findings:
  • Two- and three-bedroom homes in areas that are relatively less expensive than the regional average benefit from biggest demand boost
  • The pandemic-led search for space means demand has spiked for four and five bed homes in rural areas, with commuter favourite Cambridge seeing a notable demand uplift
  • There’s also been an increase in demand for family homes in London. Demand has increased most for two- and three-bed houses in Harrow (94%), Bexley (82%) and Merton (63%)

The increase in demand was amplified by the announcement of the extension of the stamp duty holiday to the end of September and the rapid progress of the vaccine roll-out.

Value for money driving demand for two and three beds

Two- and three-bed homes, perfect for families, remain in strong demand across Great Britain with the seaside resort of Scarborough seeing a 142% increase in demand for these homes, the biggest of any area. Although property prices for two- and three-beds in Scarborough are above the regional average, home hunters can get more bang for their buck with Zoopla data showing that, on average, houses in this area are more spacious than those in other parts of Yorkshire.

Looking further afield, a clear trend emerges with overall demand running highest in areas with house prices that are below the regional average. Picturesque Weymouth and Portland, located at the southern tip of the Jurassic Coast, has seen demand for two- and three-bed homes skyrocket by 115% since the reopening of schools.

Average prices in this area for this property type stand at £235,000, 15% below the regional average in the South West. Properties currently for sale include a Victorian two-bed terraced house for sale for £237,000 in Weymouth which is just a ten-minute walk from the town centre.

It’s a similar case in Forest Heath, Suffolk where demand has increased by 111%, and Falkirk in Scotland (108%), the latter of which is consistently one of the fastest moving property markets in Great Britain. All these areas offer great value for money, with prices well below the regional average.

The search for space continues

Moving on to four- and five-bed properties, commuters’ favourite Cambridge tops the list with a huge increase in demand of 182%. With its easy access to London and wide range of Ofsted rated Outstanding schools, it’s easy to see why the demand for family homes has been boosted by the return to school.

Houses currently for sale in Cambridge include a five-bed detached house for £675,000. The spacious property is within walking distance to the local school and Cambridge North train station.

Most locations that have seen the largest increase in demand for four and five-bed homes are located in rural or coastal areas, with scenic areas in the South East including Hastings (92%), Horsham (79%) and Surrey Heath (79%) featuring strongly.

In the South West, Stroud and Teignbridge feature in the top ten, with an increase in demand of 80% and 76% respectively. Stroud is located near The Cotswolds and was recently named as one of the best places to live in the UK due to the quality of its schools and green spaces. Meanwhile, Teignbridge encompasses a wide range of pretty towns and villages, part of the Dartmoor National Park and coastline.

Other rural areas that feature in the list include Wyre Forest and Stratford on Avon in the West Midlands, well known for being the birthplace of Shakespeare. Both areas have seen an increase in demand for four- and five-bed homes of 81% and 73% respectively. Properties currently for sale include a four-bed detached house for sale in Stourbridge for £310,000 which has a stunning rear garden.

Increased demand London

There’s also been an increase in demand for family homes in London. Demand has increased most for two- and three-bed houses in Harrow (94%), Bexley (82%) and Merton (63%). These are all boroughs that have become particularly popular amongst families seeking houses in the capital for more affordable prices during recent years.

The largest growth in demand for four- and five-bed homes is in leafy Sutton (57%) and Richmond upon Thames (50%), followed by Kensington and Chelsea (50%).

Gráinne Gilmore, Head of Research at Zoopla, comments:

“The reopening of schools in early March was a key moment for the residential property market, alongside the extension of the stamp duty holiday, with buyer demand rising by some 25% in March and April compared to the first two months of the year. 

“The data signals that in more affordable areas buyer interest is rising for 2- and 3-bed houses. On the other hand, buyer demand is rising at the highest rates for 4- and 5-bed houses in the areas where these homes are typically larger than the average signalling that a need for additional space is a factor driving interest in this segment of the market.”

Properties for sale

Post-lockdown return to school boosts the property market with family homes in high demand

2-bed terraced house for sale  – Weymouth  Available on Zoopla for £237,000

Post-lockdown return to school boosts the property market with family homes in high demand

5-bed detached house for sale – Cambridge  Available on Zoopla for £675,000

Post-lockdown return to school boosts the property market with family homes in high demand

4-bed detached house for sale – Stourbridge  Available on Zoopla for £310,000

Post-lockdown return to school boosts the property market with family homes in high demand

4-bed property for sale – Twickenham    Available on Zoopla £1,100,000

 

Growth in demand nationally:

Growth in demand for two- and three-bed houses

Rank Local Authority Region Demand growth for

2- and 3-bed houses –

8 weeks from 08/03

vs previous 8 weeks

Average value of 2- and 3-bed house
1 Scarborough Yorkshire and the Humber 142% £ 197,000
2 Weymouth and Portland South West 115% £ 235,000
3 Forest Heath Eastern 111% £ 227,000
4 Falkirk Scotland 108% £ 142,000
5 Basingstoke and Deane South East 103% £ 320,000
6 Gosport South East 102% £ 238,000
7 Reading South East 97% £ 311,000
8 Harrow London 94% £ 578,000
9 Worcester West Midlands 86% £ 201,000
10 Redditch West Midlands 85% £ 219,000

 

Growth in demand for four- and five-bed houses

Rank Local Authority Region Demand growth for

4- and 5-bed houses –

8 weeks from 08/03

vs previous 8 weeks

Average value of 4- and 5-bed house
1 Cambridge Eastern 182% £ 685,000
2 Angus Scotland 104% £ 276,000
3 Hastings South East 92% £ 416,000
4 Watford Eastern 87% £ 771,000
5 Wyre Forest West Midlands 81% £ 332,000
6 Stroud South West 80% £ 397,000
7 Horsham South East 79% £ 644,000
= Surrey Heath South East 79% £ 699,000
9 Teignbridge South West 76% £ 411,000
10 Stratford-on-Avon West Midlands 73% £ 517,000

 

Growth in demand in London:

Two- and three-bed houses

London Borough Demand growth for

2- and 3-bed houses –

8 weeks from 08/03

vs previous 8 weeks

Average value of 2- and 3-bed house
Harrow 94% £ 578,000
Bexley 82% £ 429,000
Merton 63% £ 539,000

 

Four- and five-bed houses

London Borough Demand growth for

4- and 5-bed houses –

8 weeks from 08/03

vs previous 8 weeks

Average value of 4- and 5-bed house
Sutton 57% £ 727,000
Richmond upon Thames 50% £ 1,294,000
Kensington and Chelsea 50% £ 4,151,000

 

 

Kindly shared by Zoopla

Main photo courtesy of Pixabay