There are many things to consider when buying property, but the price will always be a huge factor. The stamp duty holiday has helped many buyers reduce the overall cost of buying a home, and this has been a crucial component of the heightened activity in the market over the past 8 months.
However, some buyers will look to squeeze their money harder, and there is a way to further reduce the cost of buying property. If you can comfortably manage with a smaller property, say with one less bedroom, you can drastically reduce your outlay.
Space Station, self-storage specialists, reviewed property listings on the Home.co.uk site, for the 100 largest towns and cities in the UK. They found the biggest saving to be made from dropping down one bedroom is in Poole, the coastal town in Dorset.
The average saving on offer from this action is £517,818.
This sounds almost too good to be true, and with the size of the market in Poole, there are likely caveats to consider. An outlier property can skew figures in small areas. Therefore, while this headline grabbing saving is impressive, it isn’t going to be available to most households.
In London, the average saving from downsizing one bedroom is £450,834. Again, the wide range of properties on offer in London, and the high price of some means this figure is genuine, but not attainable by most households.
The following table is taken from PropertyReporter:
If you are looking to move from a two-bedroom property to a one-bedroom property, London is the area where you will make the largest saving. Buying a smaller house could save you £245,434 when you buy in the capital.
It might be a surprise that people buying a three-bedroom property as opposed to a four-bedroom house, and a four-bedroom property rather than a five-bedroom property don’t enjoy the biggest savings in London.
Instead, the locations that offer the biggest saving are Poole and Bournemouth, respectively.
Vlatka Lake, Marketing Manager at Space Station, said: “Many homeowners will reach a point where they no longer have a need for as much space in their property and some Brits may have reached this conclusion a bit quicker because of lockdown. It’s fascinating to see how savings from downsizing vary so dramatically around the UK, with the value of some individual bedrooms being more than whole family homes in other areas. You’re almost always going to save money by downsizing and there are storage options available if you don’t have quite enough room for your possessions in your smaller home.”
These are challenging times in the property market, but there is activity and demand for homes. At Sovereign House, we are keen to help you with whatever you need in the Hackney housing market. Why not call us on 020 8985 5800 or visit us at 213 Victoria Park Road, we look forward to assisting you with your property needs