5 surprising reasons for the 3-bed home shortage

5 surprising reasons for the 3-bed home shortage

Three bedroom homes for sale are hard to come by at the moment, and it’s because everyone wants one - from first-time buyers to retirees.

There’s an imbalance of supply and demand for three bedroom properties, making them among the quickest selling of any property type in the country.

But what’s causing it? What’s put three bedroom homes at the top of everyone’s list?

We’ve done some digging, and it turns out there’s a few reasons. Let’s take a look.

1. Older Homeowners Want to Host Christmas:

1. • A survey of homeowners aged over 65 reveals that 41% live in homes larger than they need, and 90% have at least one spare bedroom.
   • Emotional ties and concerns about hosting events like Christmas deter many older homeowners from downsizing, even though it could release capital and reduce expenses.

2. First-Time Buyers are Older and Opting for Family Homes:

2. • The average age of first-time buyers has risen to 34, and 40% of first-time buyer enquiries are for three-bedroom houses.
   • With first-time buyers comprising 34% of the market, there is a significant demand for family-sized properties, particularly three-bedroom houses.

3. The Stress of Moving in Old Age:

3. • Homeowners with larger-than-needed properties face additional time and financial costs for maintenance.
   • The stress of moving, especially in old age, is a significant barrier, with 25% of older homeowners deterred by the challenges of relocating.

4. Terraces and Semis with Three Bedrooms Sell Quickly:

4. • Three-bedroom terraced houses and three-bedroom semi-detached houses are among the fastest-selling property types, taking 31 and 32 days, respectively.
   • Three-bedroom detached houses take longer to sell (43 days) due to higher costs associated with larger mortgages.

5. Three Bedroom Terraces in Highest Demand:

5. • Three-bedroom terraced houses are in highest demand, representing nearly 20% of enquiries but only 12% of homes for sale.
   • Three-bedroom semi-detached houses also experience a demand-supply imbalance, indicating their popularity in the market.

The data suggests that the combination of factors such as the desire for hosting events, changing demographics of first-time buyers, the stress of moving in old age, and the speed of sale contribute to the high demand for three-bedroom homes. Additionally, the specific property types, such as terraces and semis, further influence the dynamics of demand and supply in the housing market.

Sourced from Zoopla