eXp UK, a real estate agency platform, believes the property market should concentrate more on providing for 2nd-Time Buyers and people looking to downsize rather than overemphasizing first-time buyers.
The agency points out that people between 29 to 40 years old make up only 25% of the population aged 29 and above, the smallest percentage of homebuyer age groups. Yet, the majority of homes on the market are designed for first-time buyers, with approximately 5.4 million flats (23% of housing stock) and 6.6 million terraced houses (28% of all housing).
Adam Day, the head of eXp UK, states that while first-time buyers are at a significant disadvantage in the housing market, the government’s approach of boosting demand without increasing supply is exacerbating the problem. The current market shows an imbalance with too many homes tailored to first-time buyers who represent a smaller segment of the buying population.
Day suggests that encouraging downsizing could help relieve issues higher up in the housing market, but this requires a better selection of appropriate homes to realign the market. He notes that buyers between the ages of 41 to 64 are the largest group within the homebuying population aged 29 and above, accounting for 47%, with downsizers making up 28%, both larger shares than first-time buyers.
