While the number of home purchases has fallen – mortgage approvals in October were a third below their five-year average – many people have still managed to move to bigger homes this year. Increasing numbers have bought in cash, meaning that Savills estate agency expects cash purchasers to make up 43pc of transactions in 2023, far higher than the 35pc seen pre-pandemic.
Other upsizers have compromised on location – Hamptons says 23pc of movers have relocated to a more affordable area, up from 18pc in 2022. Rachel Johnston, of Stacks Property Search, says: “Adjusting your search area is one of the best ways of finding better value, or a more affordable property.”
For example, two of Ms Johnston’s recent clients started their search in the Cotswolds but, unable to find anything to suit their budget, started looking in Northamptonshire.
“It’s similar to the Cotswolds in terms of architecture, village life, market towns and rolling countryside, but properties are 25pc to 30pc cheaper,” she explains. “It’s an easier journey into London and much less popular with tourists.”
And some trading up have capitalised on the falling demand for bigger homes. Polly Ogden Duffy, of John D Wood & Co estate agency, says: “Larger family homes are the costliest to maintain and more of these have come onto the market as older homeowners have sought to downsize. Provided you can afford the higher mortgage rates, or are a cash buyer, you can take advantage of heavy discounts.”
We spoke to three people who used different tactics to gain bigger homes in the difficult market of 2023.
We bought a project
Many buyers have baulked at properties that need work due to the costs of materials, which skyrocketed in the wake of Russia’s invasion of Ukraine in February 2022.
Although annual price inflation is slowing – UK construction materials prices in September were 1.8pc lower than a year ago, according to the Office for National Statistics – they are still historically very high.
“In September, UK construction materials prices were 40.1pc higher than in January 2020, pre-pandemic,” says Professor Noble Francis, economics director at the Construction Products Association.
However, those who are happy to spread renovations over several years or do some of the jobs themselves have managed to scale the ladder. Duncan Petrie, of Savills Cranbrook, says: “Properties requiring a lot of work are priced accordingly and they can be an attractive proposition for someone who wants to create their dream long-term home.”