How long is your house your home? Or rather, how long do people stay in their homes before selling up and moving?
We often talk about transactions as an indicator of market health, but what’s important is the driving force behind increased market activity. While many people have to move every year due to changes in circumstance – whether that be marriage, death, divorce or children – many will only move if they feel the time is right and market conditions will work in their favour.
Knowing how frequently people are moving is key to best understanding the state of the residential property market.
In England, those who sold their property in 2008 had owned it for around 10 years on average. This was broadly consistent across the country. Fast forward to May 2021 and those who sold had owned their home for almost 14 years on average – a shift brought to the fore in the aftermath of the credit crunch and the accompanying difficulties with mortgage availability and the ability to save for a deposit.
With the exception of new builds, moving home also relies on people selling, as much as buying, but more people felt more secure staying put. Regions in the North and the Midlands, in particular, were most impacted by the economic crisis. At peak (2012), movers in the North East stayed in their homes for an average 17.5 years before they moved.
Now, low interest rates, the stamp duty holiday and boosted pandemic savings, for those who were able to continue working, as well as an increase in those wanting to move for lifestyle reasons, have sped up the decline in the average length of stay. Most places saw a decline of around -2.5 per cent to -5 per cent in 2021. This is particularly apparent in London, where people cut the time in their current home short, in search of more space inside and out. Sales in the capital happened after almost 10 per cent less time on average compared with 2019.
Homeowners in London’s Lambeth, Lewisham and Wandsworth moved the most frequently in 2021 – moving after an average of 10 years. On the flip side, the local authorities of Harrow (23.5), Barking and Dagenham (22) and Enfield (20.6) were home to movers who had stayed in their homes for the longest.
But, even with exceptional levels of activity over the past year, still, buyers are not moving enough for us to return to the frequency of 2008.
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