Rising number of homemovers presents opportunity for brands
People in the UK are some of the most prolific homemovers in the world. Statistics show that on average we move up to eight times in our lifetime, which is almost double the amount of moves made by people in France, Germany and Spain. It’s no wonder therefore that the Chancellor has picked the housing market as one of the key kick-starters of the UK economy as we continue to navigate the turbulent waters of the Covid crisis.
The latest figures show that the number of people on the move in the UK are currently at their highest level for over a decade. The Pandemic Edition of our Property & Homemovers Report reveal that in comparison to Q3 2019 new instructions to estate agents are up by 36 per cent equating to 150,000 new properties coming to the market and sales agreed having increased by 53 per cent or by 160,000 homes.
The volume of sales agreed has already surpassed the level achieved in 2019 and the number of new instructions is currently at 92 per cent of last year’s total despite the effective shut down of the market during lockdown.
Exchanges are currently down 40 per cent as a direct result of the pandemic but a rush of completions is expected over the coming months as the market tries to catch up.
What is interesting about this report is the shift we are seeing in people’s living preferences. Unsurprisingly the pandemic has made people reassess their living situation and as a result there is a clear trend of people moving out of cities and into more rural environments with large properties and greater space for outdoor living. Sales agreed have risen fastest in rural areas (+47%), compared to just +19 per cent in urban areas and sales of detached properties have increased by 48 per cent. Inner London is the only place in the UK to have suffered a fall in average asking prices (-5 per cent). The largest increase in sales agreed is for three and four bedroom properties, up 24 per cent and 43 per cent respectively indicative of the need for home offices as working from home increasingly becomes the norm for a huge proportion of the population. We are also seeing that the surge in the property market since July has resulted in an increase of people that say they ‘want to move’. This is up by 76 per cent from Q4 of 2019 and now accounts for 523,000 people suggesting that the property market will remain buoyant well into 2021. Those in the ‘moving soon’ category have also increased by 57 per cent over the same time frame, equating to 407,389 homemovers. This means that in the coming months there are likely to be close to a million movers in the UK, which should be capitalised on by UK businesses.
One of the key reasons for the housing market to given a boost by the government is because homemovers are big business. Moving home is one of the strongest possible triggers for a wide range of high value consumer buying decisions, including mortgages, insurance, furniture, white & brown goods, home improvements, energy, TV and broadband services. Research shows that this group of consumers spend at least £10bn a year in additional retail spend, with the average homemover spending £13,000 on home furnishings and enhancements alone. So, knowing when existing and potential customers are planning to move home – and precisely where in the moving process they are likely to make buying decisions presents an enormous opportunity for organisations wishing to capitalise on this lucrative market.
Colin Bradshaw, Chief Customer Officer, TwentyCi
This was posted in Bdaily's Members' News section by TwentyCi .