Home buyers in the UK are shifting their focus towards flats, as the costs of running a house rise significantly, according to a new survey.
Property website Zoopla said more than a quarter (26.8 per cent) of new buyers are looking for one or two-bedroom flats, up from 22.2 per cent in January 2022.
The proportion of people seeking three-bedroom flats has moved slightly higher since January 2022, from 3.4 per cent to 3.7 per cent.
Zoopla suggested that higher mortgage rates and soaring energy costs are driving more buyers to consider purchasing a flat rather than a house.
But the website also said that its latest House Price Index shows that three-bedroom houses remain the property type with the highest demand, with 38.9 per cent of new buyers looking for them, although this proportion has fallen back from 43.7 per cent in January 2022.
Outside London, the average two-bedroom flat listed for sale on Zoopla, at £196,000, is nearly £100,000 cheaper than an average three-bedroom home, which has a price tag of £293,000.
“The first few weeks of the year have got off to a stronger start than might have been expected given how market activity stalled at the end of 2022,” said Richard Donnell, executive director at Zoopla.
“There has been a clear shift towards flats as the early buyers focus on value for money and adjust expectations given the hit to buying power from higher mortgage rates.”
“A proportion of existing homeowners are holding back waiting to see if sizeable price falls materialise and how far mortgage rates fall back before entering the market,” he added.
Tom Ashwood, director of London agency Tom Ashwood Real Estate said: “It is apparent that a large portion of our buyers are not prepared to risk overspending and therefore have reduced budgets accordingly.”
“This, in my opinion, isn't isolated to the housing market but the wider cost-of-living crisis that has been heavily publicised.”
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
