Compromising to buy

• 57 per cent of home buyers are more willing to compromise than they were prior to the cost-of-living crisis
• Nearly a third of buyers are happy to compromise on location if it means being able to purchase a home
• A rise in hybrid working means the proximity to transport links are no longer such a priority, people want green space and local amenities

Over half (57 per cent) of home buyers are more willing to compromise in the search for their next home than they were prior to 2022 and the cost-of-living crisis, reveals new research¹ from Direct Line Home Insurance. Traditionally home buyers have been unwilling to compromise on location, however, 29 per cent of property hunters said this was something they would now be willing to consider if it meant buying a new home.

A hike in interest rates and the cost of day to day living has seen a reluctance from potential sellers to put their homes on the market. As a result, nearly a third (29 per cent) of home buyers said that low housing stock meant that they would have to make compromises when it came to purchasing their new home, with 25 per cent admitting this was because they could no longer afford what they want. A rise in the cost of renovations, 86 per cent of tradespeople said their prices will increase in 2023², was also cited as a reason to compromise by 29 per cent of home buyers.

A fifth of Brits (20 per cent) said they would be looking to purchase a new home in the next two years.  Almost a third (32 per cent) of people looking for a new home would compromise on the size of the property and 31 per cent would be flexible on the garden size. People are also willing to compromise on the number of bedrooms (29 per cent) or having a garage (28 per cent). The research also revealed a move away from open plan living, with 27 per cent of house buyers happy to forgo this design feature, perhaps due to the need for separate working spaces in the home.

Table One: Top ten compromises home buyers are willing to make 

Almost a third (30 per cent) of full time UK employees now follow a hybrid working model³, which is why the factors that may have been considered essential prior to the pandemic, such as proximity to transport links, no longer top the list of requirements. Instead, those surveyed said that being close to green spaces (84 per cent) and local amenities (82 per cent) are far more important.

Dan Simson, Head of Home Insurance at Direct Line, commented:

“A lack of choice and high interest rates means home buyers are increasingly having to compromise if they’re looking to buy a new home. Despite this many are still planning to move over the next two years and are considering properties they may not have done previously. . Changing patterns of living mean local amneties and green space are more important than transport links and how close people are to their work.”

Richard Donnell, Executive Director at Zoopla, commented:

"Post pandemic the numbers of those able to work flexibly has increased, loosening the boundary between home and work. This means more people have an option to seek out better value for money homes by looking further afield than they might otherwise do, in locations they may not have considered previously. 

“In addition to being flexible when it comes to location, the rising cost of living and higher mortgages mean we are seeing some households looking to buy smaller homes to help offset the impact of energy costs, and questioning what their priorities may be in a home.”

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Notes to Editors

1. Research conducted by Opinion among a nationally representative sample of 2,000 adults between 10^th and 14^th February 2023
2. Data taken from a OnePoll survey collated by digital marketing agency, Embryo Digital,
3. https://www.ratedpeople.com/sp-assets/rated-people-home-improvement-trends-report-2023.pdf

Direct Line Group

Alice Osborn

PR Manager

Email: alice.osborn@directlinegroup.co.uk  

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel and pet insurance cover direct to customers by phone or on-line.

Direct Line general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line and UK Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line products or get a quote by calling 0345 246 3761 or visiting https://www.directline.com/car-cover