Middleton Advisors commissions ongoing research to investigate key trends and changes in prime UK housing markets. Our latest research looks at the likely impacts of an ageing population, generational shifts in demand patterns, and different housing preferences between age cohorts.
Managing Director Mark Parkinson comments: “Our research suggests the continued evolution of prime housing markets. With an ageing population that is healthier and wealthier than ever before, we are already seeing growing demand for best-in-class properties that are well suited to elderly residents. This demand to ‘age in place’ may lead to the slower recycling of homes and a growing pressure on the most in-demand properties with good amenities – in particular large lateral conversions in attractive urban areas and single-level retreats and barn conversions in charming rural ones.”
- The UK population is not just ageing but becoming elderly. In the years to 2040, there will be a significant increase in the number of elderly households – and the number of homes coming to the market from the deceased estates.
- The elderly ‘baby boomer’ generation (b. 1946-1964) is healthier and wealthier than their forebears. Having substantial purchasing power, they are seeking convenience and the ability to age gracefully and actively – but not necessarily in care homes or managed retirement communities.
- This is creating a new prime market of quality housing suitable for older residents wishing to ‘age in place’, whether located in country villages or accessible appealing towns and cities, offering excellent amenities.
- Upcoming Gen Z and Alpha households will also carve a new niche in prime markets:
- Gen Z (b. 1995-2009) will probably continue to occupy eastern parts of London; also tempted by many other global cities. It is likely that we may well also see them pursuing experiences and seeking environmentally conscious country lifestyles across different counties, including those such as Kent, Somerset or West Yorkshire…already home to a number of high-profile people – for example, George Osborne, Sarah Beeney, Alex James and Alice Temperley…all of whom moved to Somerset some years ago. Kent has a history of attracting the ‘hip’ east London art crowd (including Tracey Emin) and fashion designers who helped revitalise Margate, along with the Turner contemporary gallery.
- For Gen Alpha (b. 2010-2024), high levels of environmental consciousness will likely mean a continued lease of life for country properties. Artificial Intelligence will mean a continuation of choosing to work from home or a hybrid arrangement with some days spent in aconventional workspace – with urban living becoming a lifestyle decision rather than a necessity.
- These younger generations will be responsible for supporting an unprecedented number of ageing people wishing to ‘age in place’. This may well result in the slower recycling of homes. As pressures grow on the largest, rarest and most beautiful of prime stock, we may see a return to multi-generational and even communal living.
