A recent report from Rightmove highlights that the impact of changes seen in the residential housing market has now forced a high number of homeowners to downsize their properties due to lack of affordability. In fact, the recently published Rightmove report shows that the number of houses up for sale on the UK market right now is due to people needing to downsize their homes and this almost completely dominates the entire seller market. Some 40% of sellers are looking to trade down, with only 25% hoping to trade up on their homes.
Rightmove have said that the downsizing trend is putting a cap on house price rises. Though, London is the only exception due to the high concentration of equity rich buyers – many of them being from abroad and seeking a safe haven investment.
Its’ April report says that market indications point to a loss in the normal traditional spring momentum with the expiry of first time buyer stamp duty exemption in March this year considered to be a catalyst to this.
The data also says that overall market volumes look set to remain subdued in 2012 as the motivation of new sellers to come to market has stalled too, with new listing numbers down by nearly 10% in May compared to April.