Only 5% of home sellers in England have owned their property for less than three years, according to research by Connells Group, marking the lowest level on record for short-term residential moves.
The figure represents a significant decline from 8% in 2016 and 15% in 2006, when house prices were rising more rapidly and the financial barriers to moving were lower.
Financial barriers to moving
Connells Group attributed the trend to rising transaction costs, with the average mover in England currently paying £5,950 in Stamp Duty. Higher mortgage rates have added another layer of caution, with the shift from ultra-low rates reducing affordability and causing some households to delay moves whilst waiting to see if borrowing costs decrease.
Weaker price growth has left recent buyers with less equity to transfer into their next purchase. The prospect of selling for less than the purchase price creates both a psychological and financial barrier to moving, according to the research.
Aneisha Beveridge, Research Director of Connells Group, said: “Homeowners are increasingly finding that moving no longer pays. High Stamp Duty costs, higher mortgage rates and weaker price growth have created a cocktail of reasons why many households are staying put for longer than they otherwise would.”
Market implications
The research suggests that homeowners are less likely to make small, incremental moves up or down the housing ladder. When moves do occur, they increasingly need to be larger, longer-term decisions rather than short-term adjustments.
Beveridge noted that a healthy housing market depends on people being able to move when their circumstances change, whether due to having children, changing jobs or downsizing later in life. The findings come as estate agents show declining trust in political housing policy, reflecting broader concerns about market conditions.
The research highlighted that lower housing market churn not only reduces transaction volumes but also affects the efficiency of existing housing stock utilisation. This can act as a drag on wider economic growth and productivity, according to Beveridge.
The trend reflects challenges across the property sector, with recent stress in the rental market adding to broader housing market pressures.
Conclusion
The decline in short-term moves indicates structural changes in the English housing market, driven by higher transaction costs and reduced financial flexibility. The trend suggests homeowners are adapting to current market conditions by remaining in properties longer than in previous decades.
