Home Finance – In the news

Location, location, location 

Homeowners are willing to pay more for convenience, as a short walk to a town centre or high street could boost a home’s value by more than £80,000¹.  In England, homes that are close to a town are worth 27.6% more than the average property.  Interestingly, proximity costs an extra 14.2% in the West Midlands, but East Midlands homes only have a 0.9% premium. So, buyers looking to get more for their money may wish to look a little further afield – provided they don’t mind going the extra mile for a high street!   

Surge in smaller homes        

The pandemic prompted many homeowners to move out of cities in favour of bigger homes, but this trend, coined the ‘race for space,’ is now possibly being reversed as data shows demand for smaller homes is increasing. Last year, 53% of homes sold with a mortgage were smaller properties – the highest proportion in nearly 30 years². This highlights that, amidst the cost-of-living crisis and  ongoing mortgage affordability challenges, buyers are managing their expectations and settling for less space. It may not be surprising that many of these small homeowners are first-time buyers, 57% of whom purchased flats or terraced houses in 2023.   

¹Yopa, 2024,²Halifax, 2024   

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments