Buoyant quarter for market amid shift in buyer needs
A paradigm shift is under way as homebuyers seek significant lifestyle change, analysis suggests, both in the kind of homes they want and in location.
As many as a third of households are considering changing their living arrangements, one survey has found, while demand for country houses in the nation’s prime markets continue to soar.
House prices have once again reached a record high, the latest data from Halifax reports, as the market picked up further momentum in March.
Now, as further surveys outline research, finer details begin to emerge of the impact of the past year on consumer confidence and in changing demand.
As many as a third of households are considering change, according to property developer Romal Capital, citing remote working and an ambition for a greater quality of life.
Nearly two-thirds of people would see a waterfront location as their ideal setting, its analysis of 2,000 households found, with green spaces and community also proving a draw.
“We’re seeing a paradigm shift in how this country wants to live and work,” said chief executive Greg Malouf. “The current UK housing market simply does not match this new reality, and with these changing demands, needs to be a country-wide rethink on meeting housing needs.”
Polling by estate agents Douglas & Gordon suggests first-time buyers are among those seeking change, with as many as 80 per cent of under 40s wishing they lived closer to loved ones.
Previous Zoopla findings suggest almost half of first-time buyers move more than 20 miles from their parents, and now, Douglas & Gordon believes, more people may wish to be closer to those they love.
“The last year had a huge impact on how we think about our homes and factors like space, gardens and outdoor access,” said Brian Smith, chief executive.
“This time apart could see new trends emerge around how people prioritise property location in the future.”
Further market reports outline a changing picture of price growth in the first quarter of 2021, with demand for country homes in the prime market soaring.
Savills prime index, tracking performance, shows a boom in interest for country houses with price tags over £2m, with prices growing 8.8 per cent in the past year.
“Here, more than in any other part of the market, demand outstrips supply as affluent buyers continue to look to secure a home in the country,” it says.
Last month, Savills’ forecast for Yorkshire was for a higher than average increase for house prices over the next five years, from £172,326 in 2020 to £220,921, as people sought more space in the regions.
Now, there are signs of further confidence in coming months, even amid suggestion of a slowing of interest towards the end of the year. Average house prices hit a new record high nationwide as the market picked up momentum in March, according to Halifax, an annual increase of 6.5 per cent.
Following a subdued start to 2021, managing director Russell Galley said, the housing market has seen a resurgence.
As consumer confidence is buoyed, he believes, the markets can expect to be busy over coming months, while a shortage of homes for sale will keep prices up. For the longer-term outlook, he added, he remained cautious, expecting a slowing in house price growth towards the end of the year.