Dreamhomeshavemorebedrooms
DEMAND FOR family homes across London is outstripping supply as changes in buyers’ lifestyles and a reduction in the number of larger homes being built is squeezing the middle of the housing market. That is the conclusion of research by Cala Homes. It shows that families are finding it increasingly difficult to move up to a larger house, as they compete with first-time buyers and older purchasers looking for similar properties.
In a survey of people who have bought a house in London in the past three years, 53 per cent of first-time buyers said they had leapfrogged the traditional first-time buyer property to buy a larger home to meet their needs for longer. More than 62 per cent said they bought a house with three bedrooms or more.
The region’s retirees are also following a growing national trend to “rightsize” rather than downsize. More than half of those surveyed said they had bought a home which was of a similar size or bigger than their previous property, with 68 per cent moving into a home with three or more bedrooms.
The issue of increased demand for larger homes is being exacerbated by a steady decline in the number of fourplus bedroom homes being built in England. Since 1991, only 28 per cent of new homes have had four or more bedrooms, as Government planning policy focused on higher-density development and smaller homes for first-time buyers and downsizers.
The effect is being felt strongly by families trying to move up the property ladder — 27 per cent settling for a smaller property and 43 per cent going over budget to secure the house they wanted.
Cala’s research indicates that over the past 20 years, houseprice inflation on large detached homes has significantly outpaced other housing types, reflecting the scale of the supply-demand imbalance. Duncan Jackson, managing director for Cala Homes (North Home Counties), says: “The preference for younger buyers to wait longer to buy a larger property, combined with a reluctance by older generations to downsize is squeezing the middle of the market.
“The priority given to starter homes is failing to meet the real demands of households across the country and families are now finding themselves unable to upsize due to a lack of suitable properties. We believe the Government needs to take a whole-chain approach to housing in the UK and that the provision of more, larger family homes holds the key to unlocking the current crisis.”
The stakes for developers are high. Cala is one of those working on Millbrook Park, 2,174 new apartments and houses in landscaped parkland in Mill Hill, north west London. Also building here are Countryside Annington, Linden Homes and Taylor Wimpey.
A squeeze on demand pushes up house prices — but not everyone sees good times ahead for property owners. There may be a glimmer of hope for buyers, as research from
reveals that the property market is slowing down.
A property’s typical time on the market is 75 days, nine days longer than in September 2015. Numbers of houses and flats for sale are up 13 per cent on last year. predicts prices will rise just 1.6 per cent in Greater London this year.
This month the South East property market registered a third consecutive monthly price fall but the rate of fall is much slower than in London. Demand and supply in the region remain reasonably balanced, as indicated by marketing times, which continue to be some of the lowest in the country and have not increased since last year. Overall, asking prices in England and Wales have slipped for three consecutive months. This is largely due to falls in the highly populated regions of London and the south east dragging down national figures.
Several other regions are showing significant price growth. In the West Midlands, home values have increased by 6.4 per cent over the past 12 months. Supply in the region is contracting.
Paul Smith, CEO of estate agent Haart, says: “This month sees a property market that is still suffering from the Brexit blues. House prices are down, but are not out — as we near the bottom of the post-Brexit dip, with interest-rate falls likely to help pick things back up again in the second half of the year. Transactions are still up for the second month in a row, so there is still plenty of activity in the market. We are also seeing a more positive picture for first-time-buyers, as mortgage rates decrease, along with deposit and purchase prices, making it a good time to buy.”
We need a wholechain approach to housing’