PART 2: Local Homeowners Are Only Moving Every 13.5 Years

In the credit crunch of 2008/9 the rate of home moving plunged to its lowest level ever. In 2009 the rate at which a typical house would change hands slumped to only once every 20.5 years. 

The biggest reason was a lack of confidence as property prices plunged after the onset of the financial crisis in 2008. 



However, since 2009, the rate of home moving has increased, meaning today:
The average period of time between home moves in Oakham is now 13.5 years.

This is an increase of 54% between the credit crunch fallout year of 2009 and today, but still it is a 21% drop in moves by homeowners, compared to 15 years ago.

 

In the UK in the 1960’s and 1970’s we were building on average 300,000 - 350,000 households a year. Comments in a recent study by ‘The Barker Review’, said that for the UK to keep up with housing demand we needed to build 240,000 households a year to stand still. In reality, we have only been building between 135,000 - 150,000 households a year. 

It must also be recognised that our ageing UK population is a less mobile one. Many of the older generation are stuck in property that is simply too big for their needs. The fact is that in Oakham and the Rutland area, more than 6 out of every 10 owned houses has 2 or more spare bedrooms.

So, as their children and grandchildren struggle to move up the housing ladder, with those young families bursting at the seams in homes too small for them (i.e. overcrowding), we have a severe case of under-occupation with the older generation having a profusion of spare bedrooms.

Regrettably, I cannot see how the rate of properties being sold will rise any time soon. Many commentators have suggested the government should give tax breaks to allow the older generation to downsize, yet in a recent White Paper on housing published just weeks before the General Election, there was no reference of any thoughtful and detailed policies to inspire or support them to do so.

There could be an opportunity for buy-to-let landlords to secure larger properties to rent out as the demand for them will surely grow over the coming years. Homeowners in the lower - middle Oakham market will find it a balanced sellers’ / buyers’ market, but will find it slightly more a buyers’ market in the upper price bands.

 

If you are considering selling your home or property investment, let me reassure those of you thinking about selling your property that in an uncertain market, IF promoted well from the beginning, your property can still generate genuine interest and achieve success.   We recently sold (stc) this fantastic 2 bedroom cottage in 1 WEEK with 6 OFFERS made.

Do call me, I am here to help.


David Crooke / email: david@upp-property.co.uk / 01572 725 825
Owner and MD