Published: 19/06/2024
The demand for bungalows has seen a huge increase and with it their popularity has rocketed, together with their values.
This is down to various reasons, mainly due to those looking to downsize seeking opportunities to save money since the increase in the costs of living. The traditional label of such unique homes only being suitable for the more senior buyer has also been quashed in recent years, with much younger purchasers being attracted to these honest and easy single storey dwellings.
Mount & Minster's research shows that 62% of all bungalows listed for sale across Lincolnshire, Nottinghamshire and Leicestershire are already under offer. The pandemic previously slowed down the pace of downsizing but last year’s cost of living crisis driven by the war in Ukraine became a key driving force to reduce our monthly outgoings and the trend shows little sign of slowing down.
Mount & Minster Estate Agents have revealed that 28% of our home movers downsized in 2023, up from 19% the previous year and the highest level since 2016. Although it's fair to say that inflation has eased in recent months, many households are still struggling with the high cost of living. The Office for National Statistics (ONS) has revealed that 41% of adults struggle to pay their energy bills with the annual cost of gas and electricity sitting at just over £2,000 for the average three-bed home, climbing to over £2,800 for a five-bed property. The data shows that those over 60+ are most likely to struggle as they have the lowest income.
Although demand is high, only around 1 in 10 homes currently listed for sale in the East Midlands fall into the bungalow category. With demand high and supply low, this makes them hot property.
Ralph Wyrley-Birch, Senior Partner at Mount & Minster, who has seen this huge shift in popularity in recent months, states: "Clients in their more senior years are making the competent decision to downsize to a bungalow from a larger home as the cost-savings associated with such a move, as well as the additional benefits and ease that come from single-storey living in one's latter years."
He adds: “However, the amount of single-storey dwellings available on the open market is low in the current market. This is the perfect recipe for a surge in prices, however this will plateau once the values reach such a level whereby the cost-saving benefits become a false-economy if the cost to secure such a property outweighs the benefits. Until then, they'll continue to be snapped-up."
Mount & Minster are consulting with house builders at present, recommending a greater focus on the delivery of single-storey housing stock. In turn, this will help free-up larger homes for those looking to climb up the ladder, addressing the wider issue of the housing crisis in the process.
If you have a bungalow and wish to take advantage of the current surge, we would be delighted to help accordingly and advise with a free market appraisal.