Home is where the jobs are, it seems, with new research revealing that employment is the main cause for people relocating – and it could be a useful strategy for property investors, too.
Almost two fifths of under-25s move house for work-related reasons, new research from the AA has revealed, as young professionals and millennials are the most likely to generation to consider upping sticks in order to get a better job.
People want a better balance
Affordability was also a key factor, as more people seek out the perfect work-life balance in a bid to spend a smaller proportion of income on accommodation, with respondents planning to spend 3% less on a new property than they were at the start of 2018. A further 12% of people said they would be moving to live in a cheaper area, while 7% wanted to downsize and release equity in their homes.
Those aged 25-34 were most likely to be moving to make room for a growing family (24%) or upgrading to a nicer area (14%), while those aged 55 and over were more likely to be moving into a smaller property to release funds from their home (28%), or to be closer to family (26%).
How investors can use the trends
The results could have implications for property investors looking at the latest trends in order to make an investment decision, with recent analysis showing that London leaves people with the lowest level of disposable income after essential living costs, compared to places like Manchester, Leeds, Liverpool and Birmingham.
As more big businesses are choosing to relocate or open more major offices outside London in order to cut costs and tap into talent outside the capital, young professionals in particular are migrating out of the city towards other regions, and this will include private tenants as well as buyers.
David Searle, managing director of financial services at the AA, said: “Whilst decisions about when to move are not really about money, the realities of running a family home often are. Our survey shows many people are concerned about how far their pay packet will stretch and being smart in making their disposable income go further.”
He added that remortgaging can be a good option to help people save money without having to move house, while making overpayments can also allow people to pay off their mortgages early when they find themselves with extra cash.