“Urban flight” raises village home prices

Cornwall real estate

More isolated homes are becoming more popular

According to think tanks, evidence of urban flight of workers moving from city to town or village is one of the reasons for rising house prices in rural areas.

Asset values ​​in less densely populated areas are rising almost twice as fast as urban hubs, the Resolution Foundation said.

The pandemic prompted a search for space, both inside and outside the house.

But think tanks said many people still live in overcrowded homes.

Studies have shown that demand for real estate is increasing in areas such as Cornwall, resulting in higher prices.

High demand from buyers is generally accelerating price increases across the UK.

The Resolution Foundation has stated that since February 2020, prices in the UK’s 10th least populated municipality have risen by more than 10%, compared to a 6% rise in the most populous decile. It was.

The housing outlook report also suggests that smaller, more limited properties, such as apartments, are less attractive to buyers when compared to more spacious homes.

temporary Stamp duty holiday We’ve increased the purchasing power of moving companies, not first-time buyers, so they can consider buying larger properties.

However, a think tank focused on low-income people said it was too early to determine if these trends seen during the pandemic would continue in the long run.

One in five children in low-income households had their first blockade in an overcrowded house, warning that people of all ages are more likely to live in more overcrowded areas than they were 20 years ago.

“For many families, escaping the country is just a dream and must deal with the overcrowding faced during the pandemic,” said Kara Pasiti, an economist at the Resolution Foundation.

Prime Minister Rishi Sunak told MP that the government’s intervention in the housing market during the pandemic supported the broader UK economy.

He said the stamp duty holiday extension announced in the budget was “to facilitate the transition to normal.”

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