A desire for improved work-life balance is driving a dramatic increase in activity across the UK’s prime housing markets since the easing of lockdown, according to a new survey by global real estate adviser Savills.

Three-quarters of those active in the market say that Covid-19 has led them to reconsider their work-life balance.

Amongst those under 50, that figure rises to 84%, almost half of whom reported a ‘significantly’ increased focus on improving the balance between home and work lives.

A net balance of 32% of respondents are more committed to moving home within the next 12 months as a result of Covid-19, up from just 9% in an earlier survey conducted late April.

In London, a net balance of 41% want to move within the year.

Over 550 buyers and sellers registered with Savills were surveyed in the final week of June, some six weeks after the reopening of the housing market in England and just a week before the Chancellor’s surprise announcement of a stamp duty holiday on all purchases up to the value of £500,000.

“Even before the stamp duty cut was announced, we had already seen a substantial mindset shift in the affluent prime markets and an increased commitment to moving home, and to moving as soon as possible,” says Lucian Cook, Savills head of residential research.

“This was already underpinning record levels of new buyer inquiries and viewings seen across the prime market in June, but last week saw those levels peak again in many locations.

“Pent up demand is playing a large part in building a sense of urgency, but there are more fundamental lifestyle factors at play.

“And the Chancellor has now given buyers and sellers a March 31, 2021 deadline to beat, which will be particularly pertinent to buyers in the £400,000 to £600,000 sweet spot who stand to gain most relative to the price of their new homes.”

This increased urgency, particularly amongst respondents in London, reflects the desire for additional space, that was a key finding of Savills’ April survey when 39% of those under 50 expressed an increased inclination to upsize and 49% said the amount of garden or outside space had become more important in their search for a home..

“But despite this increased urgency, the market remains price sensitive, and our survey suggests that’s unlikely to change over the coming months, even though stock levels are relatively constrained and competition strong in some locations,” says Cook.

41% of respondents said there were fewer homes for sale than they expected, with under a quarter (23%) saying the opposite, resulting in higher levels of competition that buyers and sellers were expecting.

41% of respondents said there was more competition than expected, a net positive of +20%.

“We’d normally expect stock constraints to feed through into higher pricing, particularly against high levels of demand, but this is not happening,” notes Cook.

“Our prime regional indices for the second quarter showed little movement in prices.

“This survey gives us insights into why that might be – most notably the high levels of price sensitivity and risk aversion amongst buyers.”

Over half (53%) of all respondents felt prices were higher than expected, just 7% felt they were lower.

And even in the current market, against a backdrop of economic uncertainty, 48% of buyers said they would take a short term view on market pricing of two years or less, while only a fifth of buyers (22%) were prepared to take a mid-term view of five years or more.

While there is a heightened commitment to making a move, almost half (49%) of all respondents would be happy to rent as an interim solution, particularly if the right house at the right price point is not available to facilitate a desired move.

This is manifesting itself in a ‘try before you buy’ trend across London’s commuter belt, leading to stock constraints and small rental increases in the second quarter of 2020, according to the Savills prime rentals index.

Rents increased by 0.8% in Q2 across markets up to an hour’s commute from the capital.

Priorities are also changing.

A net balance of +39% consider a property’s environmental credentials to be important.

A net balance of +38% are looking for a sense of community when they move, while local amenities have a score of +29%.

Respondents with parents place increased importance on good schools, with a net balance of +14%, albeit this comes off a very high base.

“This survey tells us that buyers and sellers within the affluent prime markets are highly committed to moving, perhaps more than ever as a result of lockdown, but they are not prepared to compromise on price, location or lifestyle factors,” says Cook.

“There’s a strong market, as evidenced by the fact deals are currently being agreed within 3% of guide price, but these requirement and sensitivities will keep a lid on price growth across 2020.”