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A Change in Buyer Preferences
Throughout the year, we have seen a change in buyer preferences, research carried out by the largest property portals now confirms it. Market research by Nationwide reveals around 10% of people surveyed in September, were in the process of moving because of the pandemic. A third of people from the survey were looking to move to a different area. Whereas 30% were moving for more outdoor space and access to a garden.
Rightmove has also carried out research on what buyers are looking for. There is a clear trend of up-sizing to larger homes. Specifically, there is a demand for three- and four-bedroom homes. High demand has resulted in record high prices. This has been fueled by buyers looking for additional space, for families and home working.
According to Rightmove, the sales agreed (in comparison to last year), increased by 104% in August for larger detached homes and sales agreed for three to four-bedroom homes increased by 55%. Additionally, there was a 36% increase in sales agreed for properties with under 2 bedrooms. This included a large number of first-time buyers.
Over 4000 home-movers were surveyed earlier this year. From the data gathered by Rightmove, you can see the features which are becoming a priority for buyers and renters. 63% of buyers were looking for a property with a bigger garden. Just under half of those surveyed wanted a bigger home. 36% of movers want access to a parking space and a better home workspace. A high percentage of people are looking to live closer to parks and green spaces (36%).
There has also been a rise in the number of keyword searches signifying additional space. Search terms such as: ‘Extra room, Spare Room, Office, Study,’ increased by 71% in Q3 in comparison to Q2.
Move Closer to Work Places
For many people, working from home isn’t an option. To limit time on public transport, people increased walking or cycling to work. Many considered purchasing a property closer to work. London estate agent, Dexters reported a threefold increase in buyers looking for a home in central London, as they look to move closer to their workplaces.
As buyers reevaluate priorities, there has been a shift in their preferences. Many are now looking for space both inside and outside their homes. However, this trend has been common across household families. First-time buyers continue to prioritise location over household space.
Will the Market Slow Down We Approach the Festive Period?
Typically, the property market slows down towards this time of year. Buyers normally put their sales on hold until the New Year. However, the pressure to beat the Stamp Duty holiday deadline means the number of sales remains extremely high. The Stamp Duty holiday will end on 31 March 2021. In November, UK house prices rose by a further 1.2% and 3,8% in November. Consequently, property prices have increased by £15,000 since June. This results in the strongest market growth in 4 years as revealed by Halifax.
Russell Galley, managing director at Halifax, comments: “With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future. And while industry data shows agreed sales and new instructions to sell fell to their lowest level in the past five months, both remain at historically high levels and well above seasonal norms.
The Property Market Set to Finish 2020 Strongly
This has proven to be a beneficial year for investors. At CityRise we are confident in the future outlook of the property market. Therefore, if you’re considering your next property investment, get in touch now! As property prices continue to rise, with the increased demand for living spaces. Despite a challenging start to the year, the market has continue to soar through the pandemic and it is evident the trend will continue into the new year. Although housing demand will likely slow down to a steady pace in 2021, this is not expected until after the stamp duty holiday deadline.
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