Despite the current cost-of-living crisis, property prices in the UK are continuing to soar to record numbers. Research from Halifax has revealed that they’ve risen by 11% since this time last year, and 18.2% since the first lockdown two years ago. This means that the average house price now stands at a whopping £282,573.
Recently, Moveable commissioned a unique study into the new motivations behind buying a home in the UK, unveiling that Gen Z and Millennial Brits have completely different objectives when buying their first home.
Check out the exclusive story on The Mirror here!
The current housing market landscape
The UK is currently experiencing a cost-of-living crisis unparallel to that of any previous generations. This has undeniably transformed the housing market, with the Bank of England continuing to increase interest rates in an attempt to combat rising levels of inflation.
Research shows that March was the ninth consecutive month in which house prices increased, and rising on average by £43,577 since the first COVID lockdown in 2020.
Home-buying patterns have already seen a noticeable transformation following the effects of the pandemic, as this has seemingly changed our outlook on housing, careers and lifestyle. This has in turn fuelled the country’s “race for space”, as the increased demand for larger homes continues to drive the property market.
What does this mean for the new generation of homebuyers?
Moveable’s unique study is reflective of a generation has seen such favourable financial returns that come with being on the property ladder.
The data reveals that new home-buying motivations have become increasingly lucrative and entrepreneurial, especially in a sector where the rise in average property prices show no signs of slowing down.
UK owners/investors are getting younger:
- 14% of Brits are looking to buy a house to develop in the next year, this number rising to 40% for those aged 18-34.
- 15% are looking to buy a house to refurbish for themselves in the next year, this number rising to 40% for those aged 18-34.
- 14% are looking to buy a house as a source of passive income in the next year, this number rising to 25% for those aged 18-34.
Further research from The English Housing Survey shows that 35% of Brits who own a second home are using it as a long-term investment and source of income. In addition, the total assets for UK property owners from second homes – including buy-to-let investments and overseas property – has risen in value from £610 billion in 2001 to almost £1 trillion in 2019. It’s clear that the favourable financial returns on these investments have resulted in UK Millennials and Gen Z using the property market as a viable means to secure a secondary income, over and above a place to call home.
How can Moveable help with your move?
Moveable is a free and easy-to-use platform that helps you with the complicated process of buying a home. It has all the essentials, including expert guides, price-comparison and timesaving tools – everything you need in one convenient package that helps you with lowering your moving costs!
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