More than half of homeowners live in homes that fail to meet their needs
From pets buried in the garden to the draw of the local coffee shop or pub, our survey lifts the lid on what's stopping people from moving.
Just over half of UK homeowners claim to be stuck in a home that doesn't meet their needs.
The average homeowner says they would need a further £125,000 on top of the current value of their home in order to afford somewhere that's suitable for them.
Our survey of 2,400 homeowners also revealed that people typically stay in their home for more than four years after realising it's no longer right for them.
And when asked what finally prompted them to pluck up the courage to move, 25% of homeowners pointed to an increase in income, while 19% said having children made it vital.
Consumer spokesperson said: “We were blown away to see just how many Brits are living in homes that they don’t feel are right for the needs of themselves and their family.”
Why do homeowners feel their homes no longer meet their needs?
The need for more space was the key reason for why homes were no longer suitable, with 40% of homeowners surveyed citing this as a factor.
Meanwhile 25% said they were stuck in an area in which they did not want to live, and 23% said not having dedicated space in which to work from home was an issue.
The survey comes as many people reassess what they need from a home in light of the pandemic and successive lockdowns.
With working from home for at least part of the week likely to become the norm for many people, the need to have a dedicated space in which to work has increased as a priority, while many people feel they just need more space at home generally.
At the same time, not having to commute into the office every day means areas that are close to work or good transport links no longer hold the same appeal as they once did.
So what is stopping homeowners from moving?
Among those who said they live in a home that was not suitable for them, 39% said being unable to find somewhere that was right for them within their budget was the main factor stopping them from moving.
A quarter of those who did not like their home also said the cost of moving was a barrier preventing them from buying somewhere else.
Emotional ties
While some homeowners are unable to move for financial reasons, others feel tied to their current home for emotional ones.
Around 27% of those surveyed said they had an emotional attachment to their home, while 55% of parents said their children were attached to it.
Among this group, 13% of parents said they could not move from their current home because it would upset their children too much, and 36% said they could not bear to leave the home in which they had brought up their children.
One in five homeowners said they liked their neighbours too much to move, while 8% said they could not leave their property because they had buried pets in their garden.
Lure of the neighbourhood
Meanwhile, for many homeowners, their love of the neighbourhood prevented them from moving. Among these, 26% said their fondness of their local pubs stopped them from relocating, and 21% felt the same way about their local coffee shop.
What could it mean for you?
Our recent research showed that half of homeowners undervalue their property by an average of £46,000.
So if you think you can’t afford to move, it’s worth getting to grips with the current value of your home as you may be in for a nice surprise.
Top 3 takeaways
- Just over half of UK homeowners claim to be stuck in a home that fails to meet their needs
- The average person says they would need an additional £125,000 on top of the current value of their home in order to afford somewhere that is suitable for them
- Homeowners typically stay in their current home for more than four years after realising it is no longer appropriate for them
House prices rise at four times the rate of flats
Hot property alert! The pandemic-led ‘search for space’ and shift to working from home has fuelled buyer demand for houses.
Strong demand from prospective buyers for family homes is causing the price of houses to climb at more than four times the rate of flats.
The average cost of a house rose by 5.2% over the last year, while the value of flats inched ahead by just 1.1% over the same timescale, according to our latest House Price Index.
Buyer appetite for houses, which typically have higher prices than flats, is helping to fuel what is set to be a record-breaking year in the housing market.
More than 1.5 million homes are expected to change hands this year, a staggering 45% more than in 2020. And the total value of homes sold is expected to reach £461bn, up 68% compared with 2019.
Why is this happening?
The ‘search for space’ has been a key feature of the housing market during the pandemic, with successive lockdowns prompting many people to carry out a once-in-a-lifetime reassessment of their homes and lifestyles.
Spending more time at home has led to a desire for more space, both inside and out, particularly for families trying to homeschool and work from home.
And many older homeowners are also reevaluating their housing and lifestyle needs and moving for the first time in many years.
Meanwhile, the stamp duty holiday has provided an added impetus for many people to move more generally. The tax break means buyers pay no tax on the first £500,000 of a property purchase until the end of June, before the threshold drops to £250,000 for a further three months.
This weight of demand has led to houses selling within an average of just 42 days – three weeks quicker than flats.
What’s the background?
Successive lockdowns and the shift in working patterns is having a two-fold impact on the housing market.
On the one hand, it has changed the features people prioritise in their home, as they become more focused on having a larger property with dedicated space in which they can work and get good broadband connections.
At the same time, if workers are freed up from having to travel into the office every day, living close to where they work or in a location with good transport connections becomes less of a priority.
With many companies announcing plans to continue to offer flexible working to employees for at least part of the week, houses are likely to continue to be hot property.
The ‘search for space’ trend still has further to run, according to Head of research. And it’s a sentiment shared by a member of the Bank of England’s Monetary Policy Committee in a speech recently.
"The easing of lockdowns will continue to cause a natural fall in demand as people are able to see family and enjoy amenities that have been shut for more than a year.
"But new buyer demand will still emerge throughout the second half of the year as office-based workplaces confirm if they will be pursuing more flexible working practices," Gilmore explained.
"Households who have the opportunity to commute less frequently have more options when it comes to choosing where to live, and this could prompt a move.
"Likewise, older households will continue to review how and where they are living, with many more set to move for the first time in years.
"With an increased array of mortgages to choose from, first-time buyers will also remain active in the market."
What could this mean for you?
The mismatch between the levels of buyer demand and homes for sale means that if you have a house to sell, particularly a family home, you are likely to be in a great position to agree a sale quickly.
Things could be trickier if you try to coordinate the sale of your current home with the purchase of a new one, due to the shortage of properties currently on the market.
However, more homes are expected to be put up for sale as further lockdown restrictions ease and the vaccine roll-out continues.
Buyers
With demand from potential buyers outstripping the level of homes for sale, if you’re looking to step onto, or up the housing ladder, you’re likely to face competition.
And it’s likely to be tougher if you’re looking to buy a house, particularly a three-bedroom family home, the most coveted property type.
So get organised to give yourself the best chance of securing the home you want.
Pull together any paperwork you will need for the purchase and try to secure a mortgage offer in principle to put you in a good position to move quickly when you do spot something you like.
If you complete on a property – in other words, legally transfer ownership – before 1 October, you could benefit from the stamp duty holiday too.
Top three takeaways
- Strong demand for family homes is causing the price of houses to climb at more than four times the rate of flats
- The average cost of a house rose by 5.2% in the last year, while the value of flats inched ahead by just 1.1%
- Buyer appetite for houses has contributed to the estimated total value of homes that will change hands this year soaring by 68% compared with 2019
Renters return to city centres as lockdown restrictions ease
The revival comes as offices start to reopen and rental affordability improves, particularly in London where it has hit a 10-year high.
A three-speed rental market is emerging across the country as renters start to return to city centres.
One year on since the housing market reopened, the pandemic-led drop-off in demand for rental homes in city centres is starting to bounce back as lockdown restrictions lift.
Major city centres
Demand for rental homes in central Edinburgh soared by 26% in the month after Easter, while it is 12% higher in central Leeds and 5% higher in central Manchester.
There is a seasonal element to this trend, but the rise in demand in these city centres has outpaced the growth in wider commuter zones over the same timescale.
Rental affordability has also improved in most cities, with rents in Manchester now accounting for 28% of a single earner’s income, down from 30% in March 2019.
The exception to this demand trend is Birmingham, where it has slowed since Easter – after a much stronger period through February and March across the wider city.
London
A similar pattern can be seen in central London, where rental demand is up 7% in the month since Easter.
Rental falls in London bottomed out in February, with overall rents in the capital now down 9.4% in the year to March.
Rents in London are now at their most affordable in 10 years. They account for 42% of a single earner’s income, down from 49% last March, and a peak of 53% in the last months of 2016.
Average rents in the City of London, Kensington and Chelsea, and Westminster, have fallen to their lowest levels in a decade, with Westminster rents running at £2,259 per month - down from £2,617 per month in February last year.
What's the background?
The impact of the pandemic was felt most acutely in city centre rental markets, as people searched in less urban areas for homes with more space, both inside and out.
Central Edinburgh, Leeds, Manchester and London were at the forefront of the rental slowdown, as offices were shut and a hiatus in tourism took hold.
It drove a softening of rents in these city centres, which are still down on the year by 0.7% in Leeds, 1.1% in Manchester, 3.2% in Edinburgh and 9.9% in London.
However, the city centre downturn is starting to reverse as the economy opens up, workers start to return to offices, leisure activities restart, and renters return in search of a rental bargain.
Who could it mean for you?
Landlords
With rental demand building particularly in city centres as lockdown eases and offices start to reopen, if you have a rental property in one of these areas, you could be in a good position to let it.
Tenants
Affordability has improved in most cities, and many renters in the capital are looking to lock in the current affordability for as long as possible. Estate agents have reported an increased number of tenancies for longer than 12 months being agreed in London.
What’s the outlook?
Gráinne Gilmore, head of research at Zoopla, said: “Demand will continue to rise in city centres as offices start to reopen and this, coupled with increased affordability levels in many cases, will start to counter the negative pressure on rents seen over the last 12 months.
“In London, where rents are down 9.4% on the year, a modest reversal in rental declines has begun, but it will be a slow build back to pre-pandemic levels in inner London. The recovery will be uneven and we expect new or recently refurbished properties to attract higher levels of demand in the second half of the year.”
Top three takeaways
- Rental demand is bouncing back in city centres as lockdown restrictions are lifted and offices start to reopen
- It's led to a three-speed rental market emerging: major city centres, London, and wider commuter zones and beyond
- In central London, rents in several boroughs have fallen to their lowest level for a decade, tempting tenants back
Housing market on course for busiest year since global financial crisis
The stamp duty holiday and the pandemic-led 'search for space' are set to lead to the highest level of homes changing hands for 14 years.
The housing market is on course for its busiest year since the global financial crisis as the scramble for properties continues.
More than 1.5 million homes are expected to change hands this year, a staggering 45% more than in 2020, according to our latest House Price Index.
With the number of housing sales each year rarely exceeding 1.2 million over the last decade, this would mark the highest level of housing market activity since 2007.
As well as breaking a recent record, 2021 looks set to be one of the top 10 busiest years since 1959.
Meanwhile, the total value of homes sold in 2021 is expected to reach £461bn – up 46% or £145bn compared with 2020, and 68% compared with 2019.
While this is largely being driven by the sheer volume of homes changing hands, it is also due to more expensive properties selling amid the pandemic-led 'search for space'.
What’s happening to house prices?
House price growth has almost doubled during the past year to stand at 4.1% in April, up from 2.3% in the same month of 2020, as demand from potential buyers continues to outstrip the supply of homes on the market.
House price growth is strongest in areas where affordability is greatest. Wales leads the way at a regional level, with house prices up 6.3% year-on-year, followed by Yorkshire and the Humber at 5.4% and the north west at 5.3% respectively.
At a major city level, Liverpool and Manchester have seen the highest levels of house price growth for the fifth month in a row at 6.9% and 6.8% respectively – twice the level recorded in the more normal markets seen between 2017 and 2019.
However, price growth is slower in southern regions where affordability is more stretched.
London recorded the slowest regional rate of house price growth for the sixth month running at 1.9%, well below 3.5% seen in the south west and east of England.
House prices in the heart of London are almost unchanged year-on-year. And a number of boroughs have actually seen price falls, reflecting the softening of buyer appetite in the capital during the peak of the pandemic.
Property values are 2.5% lower than a year ago in the City of London, while in the City of Westminster they are down 2.2%, and in Kensington and Chelsea, and Hammersmith and Fulham they have dropped by 1.7% and 1.4% respectively.
How busy is the housing market?
The level of buyer interest in homes on the market is currently 29% higher than it was in 2020.
It's fuelled in part by the extension of the stamp duty holiday until the end of September as well as the ongoing 'search for space', with many people carrying out a once-in-a-lifetime reassessment of their homes and lifestyles in the wake of multiple lockdowns.
First-time buyers also now have a wider choice of mortgages available to help them onto the housing ladder.
Unfortunately, the high level of buyer demand is not being matched by the volume of homes for sale, with supply 20.8% lower than last year, putting further upward pressure on prices.
Where are the hottest markets?
Wales, Yorkshire and the Humber, and the north west are the hottest regional housing markets. The time it takes between marketing a property and agreeing a sale in these locations is 10 to 15 days faster than it was in 2017 to 2019. These regions also have the strongest house price growth.
The ‘hottest’ city markets, where homes are being sold more quickly and price growth is strongest, include Wigan, Blackburn and Burnley. A typical property in these markets is selling three weeks faster than in 2017 to 2019, and annual price growth is at least 5.8%.
At the other end of the spectrum, homes in the heart of London – where house prices are almost unchanged on an annual basis – are taking nearly two weeks longer to go under offer.
The property market is also slower than a year earlier in Aldershot, Coventry, Edinburgh, Gloucester and Southampton, bucking the wider trend of faster moving markets. However, annual price growth is on the rise in all these cities.
What this could mean for you
First-time buyers
First-time buyers are continuing to head back to the housing market, boosted by increased mortgage availability, thanks in part to the launch of the government’s new 95% mortgage guarantee scheme.
This rise in activity, combined with the shortage of homes for sale, means you could face stiff competition from other buyers.
You may face less competition if you are looking for a flat although it is still the most popular property type in London.
Homeowners
Strong buyer interest in homes on the market, particularly three-bedroom family homes, means existing homeowners are in poll position if they are looking to sell and move up the housing ladder.
With potential buyers currently significantly outstripping the number of properties on the market, you could achieve both a good price and a quick sale for your existing home.
And you could benefit from the stamp duty holiday when you buy your next home if you start your search now.
On the flip side, you are also likely to encounter strong competition from other buyers when it comes to your next property, particularly if you are looking in one of the ‘hot’ markets in the north west, Yorkshire and the Humber or Wales, or you want a larger family home.
However, more homes are expected to be marketed for sale in the coming months as lockdown restrictions continue to ease and vaccines are rolled out further.
What’s the outlook?
Going forward, the level of buyer demand is expected to ease slightly as lockdown restrictions continue to be lifted and people spend time seeing family and enjoying leisure activities that they have not been able to do for a while.
That said, it is expected to remain strong during the second half of the year, driven in part by office-based workplaces confirming whether or not they will continue to offer flexible working practices.
Head of research says: “Households who have the opportunity to commute less frequently have more options when it comes to choosing where to live, and this could prompt a move.
“Likewise, older households will continue to review how and where they are living, with many more set to move for the first time in years.
“With an increased array of mortgages to choose from, first-time buyers will also remain active in the market.
“At the same time, supply constraints will continue to underpin pricing. The lack of supply is expected to hamper potential sales during this year, yet even so, we expect total transactions this year to rise to 1.5 million, marking one of the busiest years in the UK’s residential market in more than a decade.”
Top three takeaways
- The housing market is on course for its busiest year since the global financial crisis.
- More than 1.5 million homes are expected to change hands this year, 45% more than in 2020 and the highest level for 14 years.
- House price growth has almost doubled during the past year to stand at 4.1%.