Remember the ‘race for space’? At the height of pandemic pandemonium, many homeowners were plotting to move out of cities in search of bigger homes. Now, the trend seems to have reversed, data suggest [1], with smaller homes seeing higher demand.
Flats are back At the start of 2024, smaller homes recorded the strongest increases in price growth. Analysts suggest this was in part the result of buyers adjusting their expectations to compensate for higher borrowing costs. However, the move to smaller homes is also a feature of homeowners returning to city centres. In particular, flats are back in demand: annual price growth for flats reached 2.7% in February, a sharp turnaround from a fall of -5.9% last autumn.
Small change In total, 53% of homes sold with a mortgage in 2023 were smaller properties, the highest proportion in nearly 30 years. Whether this big boost for smaller homes is here to stay remains to be seen.
[1] Halifax, 2024
🚨 Data accurate as of the date of publication –02.08.2024
🚨Information within this blog is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed.
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q3 2024
