3 bed homes: A market 'sweet spot'

3 bed homes: A market 'sweet spot'
First-time-buyers should not just look at the cost of their first home, but also do their research on whether their next step up the ladder is achievable locally too

New data analysed by Strutt & Parker has revaled that St Albans is the most expensive location for a family to upsize from a two-bed flat to a three-bed house costing an extra £185,640 on average.

Agents believe such premiums are down to the volume of growing families trading up as well as Baby Boomers downsizing, both wanting a three bed home in an amenity rich city location.

With increased demand and limited supply, south eastern cities ranked highest on the cost to trade up, with Winchester and Chichester taking second and third place for price premiums, whilst Liverpool came out as the most affordable with the potential to buy a larger property at no additional expense.

The largest price gaps are where competition for three-bed houses is at its highest,” explains Stephanie McMahon, Head of Research at Strutt & Parker. “These family homes are a property 'sweet spot', attracting interest from buyers even at times when the rest of the housing market is relatively static. The most expensive cities generally reflect markets that are popular with growing families. Four of the top five are in the commuter belt, so this trend is most acute for those who have relocated from London.”

City  

Cost of moving from 2-bed flat to 3-bed house    

St Albans

£185,640

Winchester

£160,108

Chichester

£142,157

Brighton & Hove

£122,215

Ely

£107,047

Wells

£104,809

Salisbury

£102,338

Cambridge

£98,698

Canterbury

£87,356

Hereford

£85,450


The most active purchasers are young parents with growing families. Many look to commuter cities for the perfect mix of commutability, lifestyle and schooling.

Rozanne Edwards, Head of Strutt & Parker St Albans, agrees: “For young professionals looking to upsize within St Albans, they face stiff competition from London buyers seeing St Albans as the commuter city of choice thanks to our 19-minute journey time and pretty medieval centre. This makes the three-bedroom home here in huge demand, often attracting competitive bids and selling within days of launch. This mix of locals and Londoners, from couples to young families, is a pressure point for our market. Demand in St Albans is far out stripping supply at the moment, so with this trend likely to sustain, it is unsurprising that we are at the top of the list for price premiums.”

Guy Robinson, Partner, Head of Regional Residential Agency at Strutt & Parker, says: “The country market is alive and well – we have the highest level of buyers registering with us since 2012, with key cities outside of London showing exceptional growth. These in-demand cities correlate strongly with trading up data, including the likes of Canterbury, Cambridge and Salisbury. These historic Cathedral cities offer the ultimate suburban idyll – a lifestyle mainly families aspire to.”

Stephanie McMahon, Head of Strutt & Parker Research, said: “There are some surprising results however, where much of this disparity is due to high value flats in urban locations, with limited equivalent family housing. Places like Bristol or Glasgow that rank as some of the best value cities for the growing family both have a good mix of housing stock.”

Miles Shipside, Rightmove Director and Housing Market analyst, comments: “Moving home can be challenging enough, but having put your roots down in one location, having to then look much further afield to trade up with a family in tow is harder still. However, that's the situation people find themselves in with the extra bedroom cost being too big an affordability-gap in many local markets. First-time-buyers should not just look at the cost of their first home, but also do their research on whether their next step up the ladder is achievable locally too. Planning ahead now will keep you ahead in the future as your space and lifestyle needs change.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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