Detached homes spike in popularity as movers seek space, says Halifax

Home buyers continue to look for more space, peace and privacy, according to new research.

The pandemic has seen buyers respond to the lockdowns by moving from the cities to the countryside in a housing trend dubbed the “race for space.”

This trend seems to be continuing, with detached houses being the most popular housing type among movers in the past year.

Hybrid works have allowed buyers to consider lower-cost locations where detached homes are more affordable – in areas that may not have been practical with daily commutes.

According to Halifax’s findings, the share of detached home buyers is 32 percent of sales, on average for the entire country, up from 25 percent a decade ago.

There are regional variations: detached houses are the most popular choice for movers in the East Midlands at 45 per cent, while Northern Ireland and six other regions have 42 per cent.

Halifax said the Southeast is home to many leaving the capital for more room for their money and this region has seen a share increase from 24 percent to 35 percent.

Nigel Bishop, of Recoco Property Search, said: ‘Buyers leaving the capital are particularly driven to finally own a home that offers more space and freedom without any interference from immediate neighbours.

“Due to the popularity of detached houses, buyers often face a competitive house hunt where sellers have the upper hand when it comes to price negotiations.”

In Northern England, semi-detached homes topped the choice of movers, while in London, flats were the most common property at 37 percent.

Semi-detached houses accounted for 28 percent of sales last year, followed by terraced houses at 21 percent, flats at 12 percent and bungalows at 7 percent.

Kim Kinnaird, from Halifax, said: ‘The growing popularity of detached houses reflects a desire or need for more space.

“As many companies continue to embrace hybrid working, we’ve seen people take the opportunity to find homes that better suit their lifestyles in locations that may not have been practical with a daily commute to account for.”

She added that for many, detached houses are often a later rung on the housing ladder and that when the opportunity arises, families choose a home that gives them the space to settle and grow over a longer period of time – a “house forever” that will be a more flexible space for their changing needs and lifestyles.

“The declining popularity of terraced houses, on the other hand, reflects how they are increasingly seen as the first rung on the housing ladder,” she said.

“The relatively poor energy efficiency of many older terraced houses may also be a factor when buyers look at household running costs, as energy costs appear to remain high.”

The research further suggested that the average age of a mover is currently 39, one year younger than 12 months ago and two years younger than in 2013.

Halifax claimed the declining age of movers may point to the race for space, driven by more companies taking on permanent work-from-home jobs and younger homeowners looking for homes that better suit their lifestyles.

These buyers now have more flexibility in terms of location, giving them the opportunity to purchase homes that would otherwise have been out of their budget if daily commuting had to be taken into account.

The decrease could also indicate fewer older movers. These movers might choose to expand homes rather than move or delay sales to maximize their equity before downsizing.

London movers are the youngest on average at 38, while those in Northern Ireland are the oldest at 41.

Average house prices

The average price paid by people moving home in Britain is £428,647, up 10 per cent from last year, according to a new analysis from Halifax.

The Southeast saw the highest price increases in the past 12 months. The average mover in the region now pays £591,247, an increase of 12 per cent.

By comparison, prices in the North East have remained largely flat, rising just 1 percent to £255,223.

The cost of the average mover’s home is now double – 101 per cent higher – than in 2013, at £213,284.

Over the same period, homes in nine of the country’s 12 regions saw price increases at a similar rate, with only Scotland, Wales and the North East seeing price growth at a lower level.

The average down payment by a mover now stands at £150,497, up 47 per cent from 2018.

This increase is largely in line with house prices for movers in the same period, which rose 44 percent.

London has the highest at £261,995 and the North East has the lowest deposits at £81,594, while Northern Ireland saw the biggest increase in the last five years – a 93 per cent increase – and the East of England the lowest, up 30 per cent .

Number of transactions decreased

The number of registered moves in the first half of 2023 is 112,459, the lowest number recorded by Halifax and almost 30 percent lower than last year.

The previous low was in the first six months of 2020, when 114,020 moves were completed, caused by the market stalling caused by the pandemic.

Within the regions, the annual change in movers has consistently declined by about 30 percent, with one exception. This was Northern Ireland, which saw a 65 percent drop.

Looking back over 10 years paints a different picture regionally, the North West saw a drop of just 8 per cent, compared to a 41 per cent decrease in London and a 45 per cent increase in Northern Ireland.

The number of starters also decreased during the period. In the first half of the year, 121,712 starter mortgages were taken out, about a third less than in the previous year.

This is the lowest recorded since the pandemic, but is still close to the long-term average of 132,191 between 2008-2023.

First-time buyers make up 48 per cent of UK home buyers, up from 38 per cent in 2008.