The UK has witnessed a shift in housing demand from cities to more rural or less densely populated areas of the country over the past year. A new study revealed.
The London-based think tank, Resolution Foundation, said house prices soared during the CCP (Chinese Communist Party) virus pandemic, despite the most significant economic downturn of its generation.
Is there any evidence of this “space competition” in the data? Dividing the UK municipalities into deciiles by population density, house prices rose by more than 10% in the least populated one-tenth municipalities, but 6% in the most densely populated municipalities. Only rising. pic.twitter.com/9UlTNBHhNb
— Solution Foundation (@resfoundation) May 1, 2021
“Although prices are skyrocketing across the board, densely populated areas are lagging behind, with a larger rise in the UK’s least dense deciile,” he said. Housing outlook The second quarter of 2021.
Think-tank researchers have divided the UK municipalities into deciiles by population density.
They found that since February 2020, home prices have risen by more than 10% in the least populated one-tenth of the UK’s municipalities, but only 6% in the decile of the most densely populated regions. I found.
In the capital, home prices in the suburbs of London have risen 7% since February 2020, while the densely populated Inner London has seen an average rise of only 2%.
Researchers suggest that this isn’t just the impact of London, but that cities across the UK are rising slower than in rural areas and have less preference for urban life.
This is in stark contrast to the pre-pandemic period. For the year to February 2020, price increases due to decile density remained largely unchanged, with prices in the lowest density areas actually declining towards the COVID-19 pandemic.
“Denser” type properties are also less attractive. House prices have risen about 9% over the past year, while average apartment prices have risen just under 6%.
Temporary policies, such as stamp duty holidays, may have boosted the market, which has increased the purchasing power of those who want larger homes in less dense areas, the researchers said.
However, they said, “There is tentative evidence that people who can work from home are taking advantage of this flexibility to move outside the metropolitan area.”
“If preferences continue to shift to living outside the city and families can reveal those preferences, prices could actually fall in the heart of the city,” they said.