Zoopla reveals how property size impacts buyer demand for new homes
23rd July 2021
Larger homes with 4+ bedrooms spur a 20% increase in the distance buyers are willing to move
Buyers interested in larger homes are willing to compromise and move from locations where a similarly sized property would typically be out of their price range
In London, buyers operate out of a catchment of just under three miles across all property sizes, increasing to just under five miles for new homes
Zoopla, the flexible, customer acquisition platform for housebuilders has revealed the importance of property size on the demand profile for new homes, with larger homes (4+ bedrooms) leading to a 20% increase in the distance buyers are willing to move to their next home.
Location is also key
Location also plays a vital role, with buyers in coastal and rural areas willing to move further for a larger home. In the South West, for example, buyer interest for 4+ bed homes comes from a radius that is five times that of interest for 1-3 bed homes.
For buyers searching for a larger home, affordability plays a major part when it comes to decision making. Nationally, buyers are looking at new homes further afield that are priced 18% or £73,000 cheaper than similar properties in their current location.
This figure is even higher in the South at 21%, with buyers searching to move to a home that is £100,000 cheaper than a similar property in their locality. In Scotland, the figure stands at 20%, which equates to £51,000.
Less movement in London
Demand in London is more concentrated, with the average buyer searching for property within a three mile radius across all property sizes for resale and just under five miles for new homes. This compares to an average radius of five miles and eight miles for resale and new homes respectively across the rest of Britain.
For new homes, the Help to Buy equity loan scheme has played a major part in enabling buyers who would have been priced out of buying a home in London to keep their home search more ‘local’.
Alex Rose, Director of New Homes at Zoopla comments: “The pandemic has seen a once-in-a-generation reassessment from buyers in what they want in a home, with additional living space becoming a key priority for many. Our research reinforces this, with many buyers willing to move a further distance for a larger new build home than they would for a 1-3 bed home. The report, which can be downloaded for free here, also considers the effects of changing buyer behaviour, including the ‘search for space’ and how the recent changes to Help-to-Buy and regional price caps will impact the appeal of larger homes.”
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