Family upsizing is driving property market growth says expertMonday, 21 May 2012 09:54
Across the UK sellers are putting their property on the market to down-trade to something smaller, causing demand and supply to drop.
This has seen house price figures stagnate in May according to the Rightmove house price index released today.
One of the only groups still moving up, rather than down, the property ladder is families.
“Trading down was the main motivation for moving in nine of the ten regions of the UK,” Miles Shipside, director of Rightmove said.
“Two in five of those who intend to sell over the next 12 months are motivated by a desire to trade down.
“This group includes the traditional three Ds – Death, Debt and Divorce – but also features retirement, equity release and smaller property needs.
“This compares to only one in four who are looking to ‘trade up’, with growing family, space and school requirements.”
The stagnant figures for May is the first time new seller asking prices have stayed put since the Rightmove index began.
Both demand and supply have also dropped in May due to a combination of the end of the first-time buyer stamp duty exemptions, upward mortgage rate movements and renewed Eurozone anxiety.
But May did see a yearly change with house prices rising by two per cent to see the average house price rest at £243, 759.