Over half of sellers have been in their homes for less than 10 years – London Wallet

Homeowners in the UK who sold their home in the last 18 months, spent an average of nine years in their previous home, new research from Zoopla reveals.

Table 1: Over half of sellers have been in their home for less than ten years

Source: Zoopla

The data shows two peaks in seller activity over the last eighteen months, with a  third (33%) of sales taking place after homeowners have been in their homes for three to seven years. Besides personal reasons for moving, key moving decisions have been influenced by a change in needs off the back of the pandemic, fire safety issues and the trippling¹ of mortgage rates.

The second peak in activity is influenced by those who bought their home just before the Global Financial Crisis (GFC) in 2007. This trend is more distinct in northern England, where house prices took longer to recover, only just starting to reach pre-GFC levels in 2017. The equity gains that followed helped homeowners in these regions unlock their next move.

Those in smaller homes move on average four years earlier

Homeowners in smaller homes with one or two bedrooms tend to outgrow them quickly and do not typically stay as long in their homes (nine years vs 13 years for those in larger homes). These property types are popular among singles and young families with fast-evolving home needs who are more likely to upsize earlier than more established families.

Table 2: Average number of years between sales by property size and  region

Source: Zoopla

Those in more affordable regions are also more likely to move sooner. This is evident in Scotland and the North East, two of the most affordable regions of the UK where homes cost on average £166,500 and £146,000.  Over a quarter (28 per cent) of homeowners in these regions are more likely to sell within five years of purchasing their home.

Table 3: Sellers in more affordable areas sell earlier

Source: Zoopla

Whilst mortgage rate increases have had a less pronounced effect in more affordable regions, the overall cost of moving tends to be lower in these areas making the prospect of selling more attractive for would-be movers.

People in urban areas move less often

Londoners who sold in the last 18 months stayed in their home for the longest compared to other UK regions, an average of ten years. This is most likely due to higher house prices and higher moving costs. Stamp duty rates in the capital are their highest than anywhere else in the country with the average amount paid £14,230². This includes homeowners in the borough of Kensington and Chelsea and the borough of Westminster where recent homeowners spent  13 years and 12 years in their homes respectively.

Elsewhere in England, we find that homeowners in rural areas (small towns and villages) like Mid Devon, Harborough and Swale sell after the shortest amount of time, eight years on average.

In Scotland however, those living in the main cities of Glasgow and Edinburgh, as well as larger towns in southern parts of Scotland move most often, also on average every seven years.

Izabella Lubowiecka, senior property researcher at Zoopla, commented: “Two cohorts of sellers have dominated the market over the last 18 months – those who bought just before the Global Financial Crisis and those who bought just before or during the pandemic. Their decisions to move have been influenced not just by personal needs, but also equity gains, affordability and buying costs.”