The coronavirus pandemic has had a dramatic impact on home relocation trends in the UK, with people flocking to move away from cities to rural and coastal areas, according to research by property website, Rightmove.
Not only has the kind of property we want to buy or rent changed, but also the type of area where we want to live. It has spurred people to look for a home in a scenic location with plenty of space, a garden and a garage.
© Alexey Fedorenko / Shutterstock.com
Exodus from cities
Research into property trends for 2020 and 2021 reveals the lockdown has encouraged people to seek out tranquil and pleasant locations. When the first lockdown began in March 2020, no one knew when it would end. As the spread of the virus gathered pace, so did householders’ efforts to move out of busy cities and towns.
While most business sectors were stagnant, the housing market was surprisingly buoyant. After the first lockdown began on 23rd March 2020, the restrictions led to the market being slow, as house moves were postponed.
However, once the provisional plan for lifting the lockdown was announced on 10th May 2020, people started planning to relocate. House prices increased in the summer of 2020, after the Chancellor announced a Stamp Duty holiday, leading to significant market growth.
By the time England’s second national lockdown came into force on 5th November 2020, following a series of local lockdowns, people had begun their exodus away from urban areas.
Most popular locations
Market research, carried out by Rightmove for the BBC, has revealed the most-searched-for location during the pandemic is Cornwall. In particular, Truro and Looe have led the seaside property searches.
Some estate agents in Cornwall have reported their best year since the market last peaked in 2007. Older buyers have moved to the area to retire, or to be closer to their families. Young buyers are looking for the best place to put down roots and start a family.
There is also evidence people have simply wanted to move out of London, Birmingham, Bristol and Manchester. The homes in highest demand are four and five-bedroom detached houses, with a price tag of between £500,000 and £700,000.
This is not only the case in Cornwall, but a trend all over the UK, according to Rightmove. These larger homes have seen the biggest growth in sales between 2020 and 2021.
Other popular locations have included Devon and Dorset. The research concluded many householders had turned a long-term dream to “escape to the country” into a reality, due to the exceptional circumstances.
Householders’ priorities
After the property market slowed down during the first lockdown, it picked up at a faster rate in rural areas. The popularity of life in a rural or coastal area was linked directly to people spending more time at home and their desire to be in a pleasing location.
Other key requirements included fast broadband and a garden. These were both linked directly to people’s new lifestyle as a result of the pandemic, such as working from home and having more time to sit outdoors.
The most popular keyword on property searches became “garage”. This wasn’t because more people had suddenly bought a car. It appeared householders were looking to convert their garage into a home gym to keep fit, or a workshop to while away the hours during lockdown.
Around one-quarter of the people who moved during the pandemic said it was because they feared they would catch the virus in their existing location. Sadly, 18% said they were moving because of job loss and having to downsize.
First-time buyers
First-time buyers have been hit hardest by the pandemic in terms of finding the money for a deposit. Between July and December 2019, first-time buyers made up 51% of the market. In the same period in 2020, the number had fallen by 12%.
Only 16% of first-time buyers chose a new-build home, while the vast majority chose an older property. Of those who went for a new-build property, 46% used the Help to Buy Loan scheme.
The average price of a house in England and Wales was £352,239 in December 2020 – an increase from £293,819 in January 2020.
House sales and prices are showing no sign of slowing down. The number of residential properties changing hands in June 2021 in the UK rose to the highest level since records began. A total of 213,120 sales were registered with HMRC.
Stamp Duty
Analysts say the flurry of activity took place before planned changes to Stamp Duty rules in England, Northern Ireland and Wales. It was the first time the figure had risen above 200,000. The total number of registered sales for the first quarter of the new financial year, from April to June 2021, was 428,620.
Buyers had until the end of June 2021 to take advantage of the Stamp Duty holiday that began in 2020. The record number of sales in June is likely to stand for some time. It had been driven by the pandemic, buyers needing more space and large tax savings; three factors unlikely to combine again in this way for a long time, if ever.
The total value of transactions in the first half of 2021 was £2.3 billion, which was 41% higher than the same period in 2020. This was the highest value and number of transactions in seven years, since the last flurry to beat previous Stamp Duty changes.
Tenants’ changing needs
Renters too were changing their priorities during the pandemic. In February 2020, the most sought-after rented property was a two-bedroom flat, followed by a one-bedroom flat and a terraced house.
One year on, the most sought-after rented property was a two-bedroom semi-detached house, followed by a two-bedroom detached house, according to Rightmove. This reflected tenants’ need for more space as well, after 12 months of being cooped up at home during the three lockdowns.
Tenants too have been moving out of big cities. This has led to a fall in rent of around 10% in central London’s privately-rented flats. Outside big cities, average rent increases of between 15% and 20% have been common. Renters tend to be more nimble than buyers, moving with less upheaval and at shorter notice than homeowners.
Now, as the lockdown restrictions have been almost completely lifted, there are early signs of tenants moving back to London to take advantage of the cheaper rents, in case they start increasing again.
Has Brexit also had an impact?
As well as the impact of Covid-19, Brexit has also affected the UK housing market. Analysts say cutting Stamp Duty saved the property market from the slump that occurred after the referendum vote to leave the EU.
In June 2019, the rate of growth in house prices had slowed to an average of 1%. In 2020, it was up by 3%. Now, the latest figures show a growth of 10%, compared with the same period last year.
While the predictions were negative in terms of the effects of Brexit on the property market, ironically, the pandemic has cushioned the blow.
Furnishing your new home
Whether you’re buying a new home, or moving into new rented accommodation, it can be a hectic time. Many people commission the services of a company specialising in relocation furniture rental.
Furniture Rental Online serves a wide range of sectors including relocation agents, landlords, tenants and more. We provide short or long-term furniture rental packages including bedroom, lounge and kitchen furniture, white goods and linen.
Rather than adding to the general stress of a move, let an expert such as Furniture Rental Online turn your new house into a home.