What Drives Housing Market In 2021?

Even though some industry experts believe there will be a drop-off in demand for homes in 2021, it is likely there will be many house moves throughout the rest of this year.

At Prestige & Village, we are pleased to say we bring buyers and vendors together. Also, we speak with many people looking for a house move. We know what drives people, and even if there is a drop in demand for homes this year, there will still be property moves.

Changes in people’s working practice or relationships have a big say in where they stay. Sadly, a recent study indicates changes in people’s personal lives will remain a key reason as to why people move.

This has been a challenging time for many people

Yes Homebuyers conducted a survey which outlines the reasons why people are moving home:

Divorce or end of a relationship cited by 23% of respondents
Relocating for personal reasons said by 21% of respondents
A desire to have more space was said by 19% of respondents
11% of respondents said they were relocating for work reasons

Has the pandemic negatively impacted many relationships?

With people working from home and spending a lot more time at home, it is likely tensions will have risen. For some couples and families, spending time with loved ones has been a joy. For others, it might not have been as pleasant, and this will drive changes in where people stay.

The same study also suggests searches for divorce guidance have increased by 25% due to COVID-19, and enquiries with divorce specialists have risen by 122%.

Other findings include:

57% of people say leaving their home was more upsetting than ending a relationship

Only 25% of movers have been forced to leave a property they would have preferred to stay in

The pandemic has also driven change in the housing market

It is also important to recognise that dealing with the pandemic has led many people to decide it is best to move home. Some of the other reasons for a property move include:

11% of people said they were moving for financial reasons
6% of respondents said they were downsizing to a more manageable property
2% of people were moving after getting married

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “There are a number of key life events that cause us to move home and unfortunately, divorce is one of them. We’ve seen a number of reports around a spike in divorce proceedings and breakups due to the additional stress placed on relationships during lockdown. So it’s no surprise that it ranks as the driving factor for home moves at present with Covid causing restrictions in other areas of life such as marriage and relocating for work. For some, a breakup will mean a double whammy of leaving their partner and a home they love, but luckily the number of us forced to leave a property we would prefer to stay in remains rather low. However, it says a lot about us as a nation of bricks and mortar lovers when having to leave a home is more upsetting than leaving the person we shared it with.”

At Prestige & Village, we care about our community, and supporting others. We aim to provide you with as much help and assistance as we can. If you have any property or housing questions, please feel free to contact us today.