The great bungalow shortage
Demand for bungalows has increased over 60% in 20221, while supply has flattened, meaning prices for single storey properties has risen at double the market rate in some areas. Popular because of their large gardens and potential to extend, families are now keen to make offers, debunking the myth that only older generations favour single storey-living. Downsizers are now becoming embroiled in fierce competition for bungalows with all other demographics.
£24 per day FTB house price rise
Between 2016 and 2021, house prices for first time properties increased by almost £24 per day – a faster rate than the overall housing market. On average FTBs are spending £223,751 on their first property and need to save £43,623 more than they did in 2016 to secure their first home2. This leaves a sizable deficit when you consider the average salary of a thirtysomething (the decade that most people buy their first property) rose by just 10% over the same five-year period.
Dan Simson of Direct Line commented on the findings, “The rate at which FTB prices have been increasing is frankly frightening. However, this generation of property owners are facing the challenge of dramatically increasing property prices in traditionally popular areas such as London and instead are buying in places that are less well-known. We may see an even more dramatic emergence of these ‘young towns & cities’ with the increasing prevalence of remote working that enables people to be far more flexible as to where they live. Given the commitment people need to make to get on the property ladder, it is vital they protect their investment with insurance should the worst happen.”
2Direct Line, 2022
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home.