The UK housing market is constantly evolving. From ageing baby boomers to changing family structures, these shifts means that there are more Demographic Changes on the Housing Market
Understanding these changes is essential for everyone, whether you want to buy a home in the UK or sell your house fast in the UK. It’ll help you with several aspects of buying/selling a house.
Let’s delve into the demographic changes reshaping the UK housing market.
Detailed look at the Demographic Changes on the Housing Market
Ageing Population
Baby boomers, those born between 1945 and 1964, account for a quarter of the UK’s population – making them the largest demographic. The ONS (Office for National Statistics) projects that by 2050, one in every four people will be over 65 in the UK.
Another reason the UK’s population is ageing is declining fertility rates. Studies estimate that a fertility rate of 2.1 children per woman is sufficient to sustain UK’s population. But currently, it is at 1.56, making it one of the lowest in Europe.
Therefore, ageing is pushing up the demand for housing. It is especially true in large cities like London, where many older people are downsizing and looking for more affordable housing. So, if you’re looking to sell in London, for example, you’ll need to consider the needs of this particular demographic. Make your home attractive to retirees, and you may get your house off the market faster.
Changing Family Structures
In addition to the ageing population, changing family structures also contribute to the UK’s housing market. Did you know that nearly 8 million households in the United Kingdom consist of couples without children? Statista reports this to be the most commonly found type of family composition for 2021. Couples with one or two dependent kids are coming in at a close second, totalling up to 5.15 million homes.
Moreover, people are increasingly delaying marriage, divorce rates have increased, and cohabitation is becoming more common. These factors mean a larger proportion of single-person households and a growing demand for smaller housing units, such as apartments and condos.
International Migration
According to ONS’s recent studies, a staggering 5.4 million people might move into the UK between 2018 and 2028. It is an astounding figure that undoubtedly impacts the country’s housing market.
Immigration can increase the demand for housing, particularly in urban areas with large immigrant populations. Immigrants may prefer to live in areas with existing immigrant communities or close to employment opportunities. These factors make Manchester a popular choice since it has a history of welcoming migrants. So, if you are looking for ways to sell a house fast in Manchester, market it to the right audience.
Immigrants who are buying a house in the UK for the first time may need additional support regarding mortgages, finance, and the legal process. Real estate agents must be familiar with these issues to ensure a successful sale.
Economic Factors
Economic factors, such as income levels, employment rates, and interest rates, can all affect the demand for housing. A strong economy and low unemployment rates can increase demand for housing, while high-interest rates may make it more difficult for people to afford a home.
In the UK, the economy has been resilient despite Brexit. The Bank of England recently announced that interest rates are set to stay at 0.1% until 2023. It could spur more demand for housing and hopefully help the country’s recovery.
If you’re looking for cash buyers in the UK, you must target investors who can capitalize on the current market conditions.
The Growing Demand for Accessible Housing
Accessible housing refers to properties suited for differently-abled or elderly people. It could be a ground-floor flat or a house equipped with ramps and elevators, for example.
ONS estimated that 10.4 million people in England and Wales have some form of disability.
Furthermore, the fact that the UK is ageing means the demand for accessible housing will continue to rise. Therefore, it’s important for estate agents to market properties accordingly.
Here are a few changes you can make in order to make your house more attractive to the right audience:
- Install a ramp at the entrance
- Widen the doors and hallways
- Improve lighting by adding LED lights
- Replace door knobs with lever handles
- Remove any carpeting and replace it with non-slip tiles
- Install grab bars in the bathroom
The Trend Towards Smaller Homes
Large houses are becoming a thing of the past as more people move away from traditional family units. The trend towards smaller households and single-person dwellings is forcing developers to build smaller, more affordable homes.
The preference for small dwellings has been further reinforced by the rise in remote working and the fact that millennials prefer to rent rather than buy.
Smaller homes are typically cheaper, easier to maintain, and more energy-efficient. They are also gaining popularity in urban areas as developers look to optimize their use of space.
If you have a large house and are wondering when the right time to sell is, consider converting it into several smaller dwellings. It could generate more interest from people looking for a flat or a studio apartment in the city centre.
Conclusion
Overall, the UK housing market is dynamic and full of opportunities. However, it’s important to be aware of the demographic changes that can affect the sale of a house.
People who cash-buy houses in the UK must be prepared to take advantage of these changes and know how to market their properties to the right audience.
Real estate agents must also be aware of these changes and adapt their strategies accordingly to ensure successful sales. If you’re struggling to sell your house, authentic property buyers like Zoom Property Buyer can help.
