Bungalow Bonanza! First-time buyers are snapping up one-storey homes

They have long been a favorite of older homeowners who are downsizing and want to avoid climbing the stairs several times a day.

But now bungalows are becoming increasingly popular among young families as first-time buyers look for cheaper ways to gain a foothold on the property ladder.

Realtors say young professionals in their 20s and 30s are increasingly fighting it out in bidding wars against retirees, leading to rapid bungalow sales and rising prices.

According to property website Rightmove, the average asking price has reached £356,957, meaning bungalows are worth just £5,495 less than the average UK property, closing the gap from £8,395 last year.

According to Rightmove, the number of potential buyers who set their sights on bungalows has increased by 11 percent since February 2019.

The sale is agreed within days of the bungalows being advertised, says Leah Scarborough, an estate agent based in Haart, Essex.

“Bungalows that need some work are bought by buyers aged 25 to 30,” she says.

“They can sell in just a week because prices are so high right now, which means a lot of people are struggling to afford a renovated property.”

Rightmove says that once a buyer is found, the sale is completed twice as fast as home sales in general. Bungalows took 64 days to sell in February, compared to 145 days for other homes.

There are currently 2.5 million bungalows in the UK, accounting for less than a tenth of all housing stock, according to the Valuation Office Agency.

Yet only 2,830 new bungalows were registered last year, representing 1.48 percent of all homes built by 2022, according to the National House Building Council.

That is almost a third less than 20 years ago, when 8,698 were built in one year.

The shortage is putting pressure on the market, with experts warning of fierce competition between first-time buyers and older homeowners.

John Arnold, an estate agent at Hills in Swinton, Greater Manchester, says younger buyers are turning to ‘dated’ homes as an easy way to add value with simple renovations.

‘Bungalows are attractive to older people who have lived in larger buildings, but are now looking for a home without stairs. But they are also attractive to people who want to innovate them,’ he says.

‘In recent years we have seen an increase in the number of people who want to renovate bungalows.

‘Most of these buildings are dated because they used to be owned by older people. The kitchens and bathrooms need to be replaced and new carpets and curtains are generally needed everywhere.’

Henry Pryor, an independent buying agent, says, “If you’re trying to get to the lowest rung of the housing ladder, bungalows are a good option because houses are so expensive right now.”

Extensive renovation was required when Lauren Taplin, 35, and her partner, Dan, 30, bought their chalet bungalow last August. The couple, from Leigh-on-Sea, Essex, spent £25,000 on the roof, windows, doors and plasterwork of their 1950s bungalow, which they bought for £395,000.

“We had to update everything,” says Lauren. ‘We even had to level all floors. It’s an older building and they started to sink.

“But we saw the potential. The rooms are so much bigger than in a normal house and there is a large garden.’

The bungalow has two smaller bedrooms built into the roof. Lauren and Dan’s bedroom is downstairs and their soon-to-be child will eventually sleep in one of the upstairs rooms.

“If we have a second child, we can use the other upstairs bedroom,” says Lauren.

Their home is on a quiet cul-de-sac with 15 bungalows occupied by a mix of older homeowners and younger residents, many of whom are also renovating and expanding their homes.

The couple, both realtors, plan to stay there to start a family, starting with their first baby, who will arrive in a few weeks.

‘Bungalows are excellent starter homes for first-time buyers,’ says Lauren. “We want this to be our forever home and we don’t want to move again.”

Daniel Copley, consumer expert at real estate website Zoopla, says: ‘Bungalows usually have the potential to expand and add value and space, either by building into the roof or outwards – which is cheaper than a two-story addition to a house.

“They’re great for modern living and older homes tend to come on larger lots with more spacious gardens as well.”

Almost half of the bungalows have two bedrooms. But only one in five has more than three, according to the Taxation Office.

Most bungalows are also freehold, which means that the buyers own the house and the land on which it is built.

By comparison, most apartments are sold on a leasehold basis, meaning that buyers do not own the land on which their property stands and are thus at the owner’s mercy if there are any problems with the building itself.

a.cooke@dailymail.co.uk