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Horncastle Homeowners Are Only Moving Every 16 Years (part 2)

Article Simon Jory 2017-11-07
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Horncastle Homeowners Are Only Moving Every 16 Years (part 2)

In the credit crunch of 2008/9 the rate of home moving plunged to its lowest level ever. In 2009 the average rate at which a house would change hands slumped to only once every 24 years.

The biggest reason being that confidence was low and many homeowners didn't want to sell their home as Horncastle property prices plunged after the onset of the financial crisis in 2008. However, since 2009, the rate of home moving has increased (see the table and graph below), meaning today:

The average period of time between home moves in the East Lindsey District Council area is now 16 years.

This is an increase of 51.12 per cent between the credit crunch fallout year of 2009 and today, but still it is a 30.60 per cent drop in moves by homeowners, compared to 15 years ago.

Average Length of Time (In Years) between Home Moves in Horncastle and the East Lindsey District Council Area
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
20.1716.1113.6414.5112.6513.1812.2911.1313.0712.9617.30
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
12.9312.6524.2324.2323.4524.6424.1720.3017.1117.8616.03
Average number of years

So why aren't homeowners moving as much as they did in the Noughties?

The causes of the current state of play are numerous. In last weeks article I talked about how 'real' incomes and savings had been dropping. Another issue is the long-term failure in the number of properties being built.

Back in the 1960's and 1970's, as a country, we were building on average 300,000 and 350,000 households a year. The Barker Review a few years ago said that for the UK to stand still and keep up with housing demand through immigration, people living longer and an increase in the number of single occupier households we needed to build 240,000 households a year. Over the last few years, we have only been building between 135,000 and 150,000 households a year.

Finally, as the UK Population gets older, there is no getting away from the fact that a maturing population is a less mobile one.

So, what does this mean for homeowners and landlords?

If people are less inclined to move or find it hard to sell a property or acquire a new one, they are probably less likely to move to an improved job or a more prosperous part of the UK.

Many of the older generation in Horncastle are stuck in property that is simply too big for their needs. The fact is that in the local area nearly five out of every ten owned properties have two or more spare bedrooms; or to be more exact ...

20,422 of the 42,619 owned households in the East Lindsey area have two or more spare bedrooms.

So, as their children and grandchildren struggle to move up the housing ladder, with those young families bursting at the seams in homes too small for them we have a case of under-occupation with the older generation - grandparents staying put in their bigger homes, with a profusion of spare bedrooms.

Regrettably, I cannot see how the rate of properties being sold will rise any time soon. Many commentators have suggested the Government should give tax breaks to allow the older generation to downsize, yet in a recent White Paper on housing published just weeks before the General Election, there was no reference of any thoughtful and detailed policies to inspire or support them to do so.

This means that there could be an opportunity for buy to let landlords to secure larger properties to rent out, as the demand for them will surely grow over the coming years. As for homeowners; well those in the lower and middle Horncastle market will find it a balanced sellers/buyers market, but will find it slightly more a buyers market in the upper price bands.

Interesting times ahead!

Sources:

  1. Stats from Land Registry and Census for your local authority

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Simon Jory

Simon Jory

Simon has been in Estate Agency for over 32 years and is a Fellow of the National Association of Estate Agents. Having working in all kinds of changing market conditions he is well placed to advise on how best to sell your home.

Anne Pearce

Anne Pearce

Anne prides herself on working to the highest standards and believes everyone should receive the best possible customer service. With over 20 years' experience she will not miss and opportunity.

Dawn Bannister-Law

Dawn Bannister-Law

Prior to moving to Lincolnshire, Dawn was a valuer for more than 19 years in Bakewell in the Peak District. Dawn strongly believes buyers, sellers, landlords or tenants are all as important as each other

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