Demand for bungalows is soaring as downsizers look to save on energy bills with 42% of all homes listed for sale already having found a buyer, research from Regency Living reveals.
The pandemic slowed down the pace of downsizing but last year’s energy crisis driven by the war in Ukraine became a key driving force to downsize and the trend shows little sign of abating.
Research from Hamptons shows some 41% of home movers downsized in 2023, up from 32% the previous year and the highest level since 2016.
And although inflation may have eased in recent months many households are still struggling with the high cost of living.
According to the Office for National Statistics (ONS) four in 10 (41%) adults struggle to pay their energy bills with the annual cost of gas and electricity sitting at just over £2,000 for the average three-bed home, climbing to over £2,800 for a five-bed property.
And ONS data shows that it’s those aged 60+ who are most likely to struggle as they have the lowest income of all those aged 30 or over.
But although demand is high just one in 10 homes currently listed for sale fall into the bungalow category.
In London, bungalows account for just 2% of current for sale stock, with the West Midlands (8%), North East (9%) and North West (9%) also home to some of the lowest availability.
But in the East Midlands and East of England some 14% of all homes currently listed for sale are bungalows.
Availability across the South West (13%) and Yorkshire (12%) also comes in higher than the national average.
NO-BRAINER
A spokesperson for Regency Living, the park bungalow provider, says: “For those in their later years, in particular, the decision to downsize to a bungalow from a larger home is a no-brainer given the cost saving associated with such a move, as well as the additional benefits that come from single-storey living in later life.”
But they add: “That said, bungalow stock availability is low and market turnover is far less frequent due to the fact that many bungalow homebuyers don’t tend to move on following their initial purchase.
“It’s fair to say that a greater focus on the delivery of single-storey housing stock could help free up larger homes for those looking to climb up the ladder, addressing the wider issue of the housing crisis in the process.”
