Homeowners are staying put for longer, typically living in their homes for an average of 121 months (10 years) between 2019 and 2022, compared to an average of 110 months (9 years) between 2015-18, and an average of 99 months (8.25 years) between 2011-2014, according to new research from Spring and PropAlt.
The research from Spring and PropAlt used Land Registry data, looking at the length of time homeowners stay in their home across England, Scotland and Wales.
In terms of property sizes, people typically stay in three-bedroom houses for 94 months (7.8 years), rising to 102 months (8.5 years) for four-bedroom houses and 109 months (9 years) for five-bedroom homes. This period rises to 113 months (9.4 years) for six-bedroom homes.
LACK OF LIQUIDITY
While it is to be expected that people live in large family homes for longer, anecdotal and numerous third-party evidence also suggests a chronic lack of liquidity for larger properties, with many people feeling trapped by barriers to downsizing such as the cost of moving and Stamp Duty Land Tax.
Spring has long been vocal about a need to offer a reduction in Stamp Duty Land Tax for those at the top of the market to help encourage downsizing and stimulate the wider market.
REGIONAL OUTLOOK
Looking at this data from a regional view, homeowners living in a five-bedroom house in the City of London are staying in their home for 129 months (10.75 years), slightly longer than the UK average. This trend is also evident in the district of Richmondshire in North Yorkshire, where the average period is 126 months (10.5 years) and Knowsley in Merseyside 137 months (11.4 years).
In comparison, homeowners who own a four-bedroom home in the City of London are staying in their home for 100 months (8.3 years), whereas homeowners who own a three-bedroom home in the City of London are staying in their home for 119 months (9.9 years) and homeowners who own a two-bedroom home are staying put for 98 months (8.1 years) on average.
Homeowners who own a four-bedroom home in Richmondshire, North Yorkshire are staying in their home for 102 months (8.5 years), whereas homeowners who own a three-bed in this region are staying put for 98 months (8.1 years) and those who own a two-bed home are staying in their home for 97 months (8 years).
Looking back at Knowsley in Merseyside, homeowners who own a four-bedroom home are staying in their home for 108 months (9 years), falling to 98 months (8.1 years) for those who own a three-bedroom home, and the average time for a two-bedroom home is 97 months (8 years).
The findings come as national home buying service Spring reports that enquiries from home movers looking to downsize has increased by 15% over the past 12 months, likely driven by cost-of-living increases causing many to consider ‘rightsizing’ their property and freeing up capital either for themselves or to support their children. Equally, some older downsizers have historically been put off by the lack of suitable retirement properties on the market, which is gradually changing.
COST-OF-LIVING
Cormac Henderson (main picture), Co-Founder and Executive Chairman at Spring, says: “Uncertainty, rising borrowing costs and cost-of-living increases mean that many people are staying in their homes for longer. Another factor to consider is that with getting onto the property ladder becoming so difficult, grown-up children are staying at home for longer than ever before, which might be putting the brakes on parents downsizing their homes.
“We also know that many older residents feel trapped in their large family homes. We’ve previously called on the government to introduce an initiative for Stamp Duty Land Tax exceptions for downsizers, and we still believe this initiative would accelerate the number of elderly homeowners who are considering downsizing.”
Top 10 areas where homeowners stay in their six-bedroom homes for longer periods
|
Area |
Average time spent |
|
Broxtowe |
128 months (10.6 years) |
|
Bexley |
125 months (10.4 years) |
|
Central Bedfordshire |
123 months (10.25 years) |
|
East Hertfordshire |
123 months (10.25 years) |
|
Redbridge |
120 months (10 years) |
|
Southwark |
120 months (10 years) |
|
Stratford-on-Avon |
119 months (9.9 years) |
|
Tameside |
117 months (9.75 years) |
|
Buckinghamshire |
116 months (9.6 years) |
|
Cardiff |
115 months (9.5 years) |
Top 10 areas where homeowners stay in their five-bedroom homes for longer periods
|
Area |
Average time spent |
|
Knowsley, Merseyside |
137 months (11.4 years) |
|
City of London |
129 months (10.75 years) |
|
Richmondshire, North Yorkshire |
126 months (10.5 years) |
|
Sutton |
124 months (10.3 years) |
|
Tameside |
122 months (10.1 years) |
|
Watford |
120 months (10 years) |
|
West Lancashire |
119 months (9.9 years) |
|
Solihull |
115 months (9.5 years) |
|
Rushmoor |
115 months (9.5 years) |
|
Reading |
114 months (9.5 years) |
Top 10 areas where homeowners stay in their four-bedroom homes for longer periods
|
Area |
Average time spent |
|
Havering |
114 months (9.5 years) |
|
South Lakeland |
112 months (9.3 years) |
|
Bolton |
111 months (9.25 years) |
|
Enfield |
111 months (9.25 years) |
|
Gravesham |
111 months (9.25 years) |
|
Croydon |
110 months (9.1 years) |
|
Hertsmere |
109 months (9 years) |
|
Luton |
108 months (9 years) |
|
Oldham |
108 months (9 years) |
|
Knowsley, Merseyside |
108 months (9 years) |
Top 10 areas where homeowners stay in their three-bedroom homes for longer periods
|
Area |
Average time spent |
|
City of London |
119 months (9.9 years) |
|
South Bucks |
106 months (8.8 years) |
|
Barking and Dagenham |
102 months (8.5 years) |
|
Conwy |
101 months (8.4 years) |
|
Enfield |
100 months (8.3 years) |
|
Pembrokeshire |
100 months (8.3 years) |
|
Powys |
99 months (8.25 years) |
|
Wrexham |
98 months (8.1 years) |
|
Basildon |
98 months (8.1 years) |
|
Camden |
97 months (8 years) |
Top 10 areas where homeowners stay in their two-bedroom homes for longer periods
|
Area |
Average time spent |
|
Wyre |
102 months (8.5 years) |
|
West Lancashire |
102 months (8.5 years) |
|
Eden |
98 months (8.1 years) |
|
Knowsley |
98 months (8.1 years) |
|
Derbyshire |
97 months (8 years) |
|
Craven |
95 months (7.9 years) |
|
Isle of Wight |
95 months (7.9 years) |
|
Merthyr |
94 months (7.8 years) |
|
North East Derbyshire |
93 months (7.7 years) |
|
Shepway |
92 months (7.6 years) |
