Why are there so few Bungalows on the market and why are they so expensive?
In this article we discuss some of problems associated with a lack of Bungalows.
Due to the rising cost of land, new home builders are constantly looking to maximise return per square metre of land. Bungalows are the least efficient type of property and however with a growing population they are also some of the most attractive.
In addition to this we have an ever ageing population. In the ’80s 14% of the UK population was over 65. Now almost 20% of the population is over 65 and projections show this growing to almost 25% of the population by 2045.
Bungalows are popular for stair free living whilst still giving owners the freedom of owning their own home with benefits such as private driveways and front and rear gardens.
Unfortunately to make matters worse, many bungalow owners have “improved” their bungalows with large loft conversions, turning many of the single story homes into standard two story homes. This increases their value but given the dwindling supply of standard bungalows it doesn’t help the situation, particularly given how many semi-detached and detached homes are out there in the market.
Of course the reason behind the lack of new supply of bungalows all comes down to economics. Land is increasingly more and more expensive, and new home builders want to maximise their return per sq meter of land.
What Are The Consequences?
With less bungalows on the market, demand far outstretches supply, meaning the price of bungalows is pushed up much higher than a comparably sized standard two story home.
Therefore older couples looking to move into a single story home aren’t always fortunate enough to be able to afford one, and therefore decide to stay put.
And those who own bungalows are also less likely to want to sell because they know that they are a good investment.
Bungalows aren’t just for old people, but also those with disabilities and these are the real losers here in the situation. Finding homes with bedrooms on the ground floor is becoming near impossible and increasingly more expensive.
As with many things in the property industry, it is all about money. Unfortunately until something changes we aren’t likely to see many new bungalows, and possible less and less if the current trends continue.
There is a severe shortage of Bungalows in the UK. In 2016 just 1% of New Homes were Bungalows, down from 14% in the late ’80s. In real numbers the problem is even worse due to the fact that in the late ’80s we were building more homes than currently too, so this simply compounds the issue.