Upsizing homebuyers accounted for 440,526 transactions – equivalent to 60.6% of all purchases – in 2023, analysis from Yopa has revealed.
Yopa analysed how a prolonged climate of high interest rates and expensive borrowing has impacted market activity when it comes to the number of homebuyers choosing to climb up and down the ladder, which combined, accounts for 93% of property market activity.
While upsizing homebuyers accounted for 440,526 transactions, this represented a 31% annual decline in terms of total transactions compared to 2022, and as a proportion of all annual sales, it marked a drop of 3%.
The upsizing hotspots in which upsizing buyers represented the largest proportion of all annual sales in 2023 were Northern Ireland (77%), Scotland (71%), and London (64%).
The data also showed that 2023 saw 232,439 downsizing transactions.
Due to difficult economic conditions causing less people to move home, this total represented a 21% drop on the previous year.
However, these transactions accounted for 32% of all property sales for the year, a rise of 3% compared to 2022.
The regions which accounted for the largest proportion of downsizing transactions in 2023 were the South West (37%), South East (36%), and the East of England (36%).
Verona Frankish, CEO of Yopa, said: “There’s a lot of focus on buyers when it comes to climbing up the property ladder whilst downsizing is usually something we associate with those in later life, but combined, this market movement accounts for a vast majority of all the purchases made each year.
“However, it’s clear that the difficult conditions seen in recent years as a result of higher interest rates has reduced market activity levels of both fronts, with those buyers who have made their move more likely to have downsized in order to reduce the costs associated with homeownership, as well as benefiting from equity release.
“The good news is that, so far this year, the property market has stabilised and we’ve seen the first rates cut in some time, which has helped to boost buyer confidence.
“It will be interesting to see if, come the end of this year, downsizers still account for the majority of market activity, or if those with ambitions of owning larger homes have decided to jump back on the property ladder.”
