Homeownership Trends UK: Average 9 Years Before Moving
In the UK, homeownership trends UK show that homeowners now stay in their homes for an average of nine years. Over the past 18 months, there has been a surge in homeowners selling properties that they have lived in for three to seven years. Rising mortgage rates, fire safety concerns, and the COVID-19 pandemic have driven this change. Personal lifestyle changes and affordability challenges are also factors.
Let’s explore the factors that have led to this trend, how it varies by region and property type, and what it means for the housing market.
The Rise in Homeownership Duration
Homeownership in the UK has evolved, with people spending more time in their homes than ever before. An average of nine years is now the norm, with certain areas and demographics diverging from this trend. Several factors, such as the rising cost of living, shifting social priorities, and a volatile housing market, have contributed to this shift.
In the past 18 months, 33% of homes were re-sold after their owners had lived in them for between three and seven years. This indicates a growing willingness to move earlier than the previously typical ten-year or longer timeframe.
The Impact of Rising Mortgage Rates
One of the key driving factors behind homeowners deciding to move is the sharp increase in mortgage rates. After a period of relatively low rates, mortgage costs have surged, pushing many to reconsider their housing situation. Homeowners with variable-rate mortgages or those nearing the end of fixed terms face higher repayments. This has prompted some to seek more affordable housing or better financial stability.
The tripling of mortgage rates over recent years has made it difficult for some homeowners to afford their current homes. The higher costs have created an environment where moving seems like a more feasible option. Those looking to sell their homes may be doing so not only for personal reasons but also to reduce their financial burden.
The Influence of Fire Safety and Pandemic Re-evaluations
The recent surge in fire safety issues, particularly in relation to high-rise flats, has also influenced homeowners’ decisions to sell. Safety concerns have driven many to re-evaluate their living situations. Some have chosen to move to safer, more suitable properties.
Additionally, the COVID-19 pandemic caused a massive shift in how people perceive their homes. With many people working from home for the first time, there was a significant re-assessment of what people wanted from their living spaces. This re-evaluation led some to upgrade to larger homes or properties with more outdoor space.
Regional Variations in Homeownership Duration: Homeownership Trends UK
There is considerable variation in how long homeowners stay in their properties, depending on the region. For instance, Londoners tend to remain in their homes the longest, with those who sold within the last 18 months staying for an average of 10 years. This is due in part to the higher house prices in the capital, which make moving a more costly proposition. Stamp duty rates are particularly high in London, which adds to the financial burden of moving. The average Londoner pays £14,230 in stamp duty, which can significantly deter people from moving.
However, homeowners in areas with more affordable housing, such as Scotland and the North East of England, tend to move more frequently. In these regions, the average cost of a home is much lower. This makes the cost of moving, including stamp duty and fees, more manageable. In Scotland, for example, the average house price is £166,500, and in the North East, it is even lower at £146,000. As a result, over a quarter (28%) of homeowners in these areas tend to sell within just five years of purchasing their home.
Why Do Smaller Homes Have Shorter Ownership Periods?
Another interesting trend is the shorter duration homeowners spend in smaller properties. Those who own homes with one or two bedrooms tend to move more quickly than those in larger homes. The average tenure for those in smaller homes is just nine years, compared to 13 years for those in larger homes. Smaller homes are often more suited to younger buyers or singles, whose housing needs change more rapidly. As these homeowners outgrow their space, they are more likely to seek larger properties, often sooner than those in bigger family homes.
Younger families may start in one or two-bedroom homes. As their children grow, they often upsize earlier than established families.
Property Size and Affordability Play Key Roles in Moving Decisions
Another factor influencing the speed with which homeowners move is property size. In regions where smaller homes are more prevalent, homeowners tend to move sooner. In more affordable areas, where the overall cost of moving is lower, people are more likely to sell their homes earlier. This is especially true in Scotland and the North East. The lower cost of living and housing prices make selling and buying easier.
In more expensive regions like London, the cost of moving is significantly higher. This often leads to homeowners staying longer. In areas like London, buying a new property and paying stamp duty can be expensive. This deters many people from moving.
Different Regions, Different Trends: Homeownership Trends UK
While London homeowners may stay in their properties for longer, the trend is quite different in other parts of the country. In rural areas and smaller towns, such as Mid Devon, Harborough, and Swale, homeowners tend to sell their properties sooner. The average time spent in these areas is just eight years, which is notably shorter than the national average.
In contrast, in major cities such as Glasgow and Edinburgh, homeowners move more frequently. The fast-paced nature of urban life, combined with the constant evolution of property prices and demand, leads to more frequent transactions in these regions. In these cities, the average time between sales is just seven years, which reflects a higher level of mobility and market fluidity.
Cohorts of Homeowners Driving the Market
Two major groups have dominated the housing market in the past 18 months. These groups are those who bought before the 2007 Global Financial Crisis and during the COVID-19 pandemic. The former group has seen significant equity gains since purchasing their homes, which has made it easier for them to move.
For the latter group, the pandemic has had a lasting impact on their home-buying decisions. During the pandemic, many people re-evaluated their housing needs. This led to increased demand for homes with more space or better layouts for working from home. The rise in remote working caused many people to rethink where they wanted to live. This influenced recent moves.
What Does This Mean for the Housing Market?
As the housing market continues to stabilise, there are several key takeaways for both homeowners and potential buyers. For those considering selling, it is important to understand the value of their current property and what they can afford to buy in the current market. With mortgage rates continuing to rise, it is essential for sellers to consider the financial implications of moving.
For buyers, it is a good time to consider the long-term value of a property and whether it will suit their needs for the next several years. As the housing market adjusts to post-pandemic life, key factors influencing homeownership decisions will continue to evolve.
Conclusion: Homeownership Trends UK
Homeownership trends in the UK have seen significant changes in recent years. From rising mortgage rates to the lasting impact of the COVID-19 pandemic, homeowners are moving more frequently than in the past. While homeowners in London tend to stay in their properties the longest, those in more affordable regions and smaller homes are moving sooner.
The housing market is evolving. Therefore, homeowners must stay informed about factors like equity gains, mortgage rates, and affordability. If you’re considering buying or selling, now is the time to reach out to local agents. They can help you understand current market conditions and future trends.