Size doesn’t matter: Why the ‘race for space’ in London property is over
The pandemic had some strange effects on the London housing market. Being cooped up made people realise the importance of having space, both indoor and outdoor, which led to the so-called “race for space” and a minor London exodus.
More than 100,000 Londoners exited the city in 2021, many taking up homes in the surrounding areas with bigger gardens and extra rooms that could be used for home offices. Then the pandemic ended, kind of, and all those people with their extra space realised that, actually, London is pretty great and living out in the sticks isn’t all it’s made out to be, and in 2022 a record 30 per cent of homes in London were let to people who previously lived outside the city, with a fifth fewer people moving in the other direction.
Now estate agents are reporting a trend among buyers who increasingly value design and aesthetics over square footage, with some declaring the race for space officially over. One of the big changes is an about-turn on the demand for garden space.
“For London sales we have seen a backwards step on outside space,” says Tom Parsons from Middleton Advisors. “Buyers are instead looking for innovative ways to revitalise the interior.”
People are particularly interested in flats and houses where they can carry out minor building work to remodel the house to suit their needs. “Amidst rising mortgage costs, many buyers have downgraded their size expectations, taking the view that something is better than nothing,” says buying agent Emma Fildes, founder of Brick Weaver.
“Those with a creative eye are scouting for opportunities where they can add space and value. This ranges from smaller tasks like adding a downstairs toilet under the stairs, to the classic side return extension or converting a studio into a one bed apartment with some nifty ideas.
“The buzz of the city has returned and for many people, previous plans for more space in the suburbs are being replaced with a desire to be back in the thick of it, albeit with less space. The younger generation are keen to experience life post-lockdown while those who moved out temporarily are now reconsidering moving back in.”
The good news is, most homes can carve out more usable space given some clever design choices. “In home improvements, design optimisation and space utilisation are key,” says Adrienne Minster, CEO of tradesperson listings site Rated People. “With life, for the most part, now back to ‘normal’, homeowners want their homes to be fun again and not just somewhere where the home office is.”
But buyers are also wary of properties that require large amounts of work, especially given ongoing supply and staffing issues in the construction trade leading to inflated prices. “There’s been a recent shift away from the desire to buy a doer-upper,” says Aidan Coates, head of sales at Hamptons in Hyde Park and Bayswater. “With a shortage of construction workers, escalating costs of materials, a lack of stock, and long delivery times, buyers are choosing renovated properties – somewhere they can move in and immediately enjoy all the benefits.
“Buyers opting to purchase a fully renovated home will often prioritise aesthetics over square footage. These purchasers want the enjoyment of living in a chic space that offers comfort and style. Space is still important, but often secondary to the look and overall feel of the property – smaller spaces with the right décor and soft furnishings can feel very luxurious, intimate, and cosy.”