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
Let’s delve into the demographic changes reshaping the UK housing market.
Detailed look at the Demographic Changes on the Housing Market
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.
Changing Family Structures
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.
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.
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.
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.
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.