Are More London Homeowners Looking to Relocate?

Undoubtedly, the economic situation in the UK is having far-reaching implications. As UK citizens scramble to find ways to cope with the current cost of living crisis, several economic realities are emerging. Among those realities is the continuous overpriced London property market.

With average house prices sitting at £543,099, the question is: are London houses still overpriced and why is it that we’re seeing more homeowners relocate to more ‘affordable’ parts of the country like the North East and Yorkshire? 

The lower cost of living mixed with the increased opportunities from start-up companies and larger corporations moving their headquarters ‘up North’ means that moving outside of London is proving to be popular.

Downsizing

Many homeowners are now looking into changing the amount of money they spend on housing to make their budgets work. For many, it is a tight struggle to cover expenses such as rent and mortgage while still covering other basic living needs.

Some UK property owners are eyeing smaller properties as their way out of the conundrum. Smaller properties, especially in certain areas, translate to cheaper mortgages. Essentially, those who opt to downsize may be able to cope better with the current cost of living crisis as they’ll have more money available for daily expenses. If you are a homeowner who is looking to sell their London townhouse then you might want to consider contacting The Property Buying Company.

This of course necessitates relocation. The distance between the old home and the new one depends on how much of a mortgage reduction the homeowner is seeking. Many may seek smaller homes in their existing neighborhoods but some may have their eyes on properties in less expensive locations some distance away.

Downsizing is not a 2023 phenomenon. As of October 2022, the number of UK households wanting to sell property fast and move to a different property was 401,000, relocation activities were afoot for 331,000, and 241,000 had recently moved into a new home.

These numbers were higher than those of the same period in 2021, and are expected to increase as the cost of living crisis continues into 2023. According to the data for 2023 so far 30% of UK homeowners are considering downsizing right now and a further 60% consider it a possibility if the crisis does not abate.

Not a Simple Decision

But the decision to downsize or relocate outside of London isn’t an easy one. It is especially difficult to uproot after time and energy have been expelled from establishing roots in a community.

Some of the factors that impact the decision include, the connections with friends and family in the current location the distance relocation will create, the time it takes to move, and whether the smaller property can accommodate the household.

As more UK citizens strive to stretch their budget to cover living expenses and the London property market shifts, relocation can be expected. This means we will continue to see homeowners uproot from London and further North.

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