What's universally loved among homebuyers, and what could be targeted generationally?

The property market evolves. Tastes can change, and never was that clearer than during the pandemic years and the fallout. Being forced to stay at home really made us all reconsider what’s essential in a home, and what’s desirable. 

At MFS, we’ve been following trends in the market for several years now, via our Homebuyer Wishlist reports. We surveyed homeowners and homebuyers in early 2021, at the height of the pandemic, to gauge what factors and features mattered most to buyers. We conducted the same survey for Q3 2024. 

As to be expected, with the lockdown years firmly behind us, there’s been some notable changes. What surprised us though, is what’s emerged as universal. There are some elements that are so important to people, that a global lockdown isn’t enough to change their minds or shift their preferences. 

Our results should give property investors something to mull over, especially when it comes to the demographics they may end up targeting. Where clear differences in preferences emerged in our data, the key differentiator was the age ranges. 

Young and old buyers are focusing on very different things in the current market, understandably. Embracing these contrasts could be the difference between a good investment, and a great one.

As safe as houses 

But first, it’s worth noting what’s proving universal. The type of features that may be safe to target in any economy, or at any point during a global pandemic!  

For our Q3 Wishlist report, we surveyed a nationally representative sample of UK adults on their homebuying preferences. Of those within this sample who had bought a property in the prior year, or were in the process of doing so, we asked them to rank certain factors by importance. 

With many years of working from home behind them, broadband and mobile connectivity took the top spot, with 82% of all homeowners/homebuyers saying it was either very important or somewhat important. 

What’s more, it proved important for both genders, and all age groups. It ranked third in 2021 and I think it’s safe to say, as we push further into the 21st century, having a solid internet connection will never not be paramount. 

The next few top spots were taken by factors that everyone, of all backgrounds and ages, can appreciate. What’s more, they didn’t move too much in the rankings when compared to 2021’s results. 

Garden and/or outdoor space came in second (76% said it was very or somewhat important), followed by proximity of public spaces and parks (74%), and the quality and finish of a property (74%). 

If your residential investment is wired up for the digital world, has a massive garden, is close to a park, and is generally very pretty – you’ll likely please most who come a-calling. But, if you want to be a bit more targeted, there are certain features that may make or break a more tactile strategy. 

The generational differences are obvious

It’s worth paying attention to local demographics. Buyers in Barton-on-Sea, with it’s high concentration of elderly people, may have vastly different preferences to those in say Tower Hamlets, where the median age is 30. 

Our results highlighted just how substantially different these preferences can be. We split our results by age into three categories: 18-34, 35-54, and 55+. It’s here where the most dramatic variations were found. 

The young appear to be thinking long-term, while older generations may be favouring what’s comfortable in the present. Maybe not surprising, but to illustrate, proximity to good schools ranked dead last in our results. But, it was important for 72% of buyers in the 18-34 category. For those aged 55+, only 12% said the same. 

Similar disparities showed that the young have priorities that simply don’t register for those of retirement age. The young want to find their forever home by the looks of things, with the potential for extensions and conversions being important for 71% of 18–34-year-olds. 

Only 17% of those aged 55+, who’ve likely already spent many decades in their forever home, felt the same. Moreover, the culture of the community and proximity of cultural sites (72% vs 42%), and transport links (78% vs 55%) also threw up notable differences. Those in their later years appear less inclined to spruce up their homes, explore their surroundings, or be within an hour of London. 

Ignore these results at your peril  

Some may be tempted to ignore these results. In property, if you build it (or invest in it) they will come, right? There is always demand for housing of all shapes and sizes, and it’s not like there’s much movement from young buyers anyways.

Granted, it’s hard for young people to get on the ladder. The number of young people securing a mortgage has dropped 13% since 2021, according to Quilter. But, this may be the result of the pandemic more than anything else. In fact, if you zoom out, recent years have been particularly kind to young buyers. 

Analysis from The Institute for Fiscal Studies (IFS) showed that homeownership rates among those aged 25-34 sat at 32.8% in 2015. By 2022, it had risen to 39.1%. During the same period, homeownership rates actually dropped for older generations.  

Retiree homeowners may also be on the verge of driving activity in the market. A “great British downsize” could be just around the corner. Despite many lamenting the hesitancy of older generations to make way for the young, recent research from TwentyCi revealed the number of homes being sold by those aged over 66 is up 13% on 2023. 

There is always scope for better targeting in the property world. Doing so may yield better results than simply utilising a scatter gun approach. Imagine investing in a single studio flat, only to discover the local population is filled with 20-something couples looking for large homes to house young families.

It’s risky to assume one size fits all. It’s exactly why we offer such a diverse range of lending products here at MFS. We need to match the diverse nature of the property market, for both our client’s benefit and ours. 

We’re there, ready with residential funding for large terraced houses, through to auction capital for a debilitated bungalow. So long as new ways of targeting specific target markets emerge, or preferences shift among different demographics, we will continue to adapt.