Although mortgage rates have dropped back slightly after spiking at the start of the Middle East conflict, they are still hovering around 5.5pc. The leap in price from a three-bedroom property to one with four or more bedrooms is also significant, meaning many people are seeking three-beds for their second step up the housing ladder.
Among them are Katie Herbert, a PR director, and her husband. The couple, who have two young children, are hunting for a three-bedroom home in Maidenhead, Berkshire.
“An attractive three-bed home in Maidenhead near good schools might be somewhere between £550,000 and £675,000 – but when you add that extra fourth bedroom, often prices will be a minimum of £800,000,” says Herbert.
Yet a lack of supply means the search is proving tricky, as people are “hunkering down and waiting the market out”, she adds.
Competition from downsizers
Younger buyers also face competition from wealthy, asset-rich downsizers looking for three-bedroom homes. The over-60s hold 55pc of the UK’s housing wealth, totalling £3.84tn, while the under-40s hold just 10pc, according to Savills estate agency.
“Downsizers have accumulated decades of possessions wrapped up with memories and frequently search for homes that have enough space to house these without being unmanageable to run – this often means three bedrooms,” says Sharnie Rogers, of Strutt & Parker.
“They prefer a couple of spare rooms that can be flexible – allowing them to accommodate an office, hobby room or spare room for children and grandchildren.”
Jill Samways and her partner David Standbrook bought Cranborne Cottage, close to the Dorset village of Cranborne, in 2022.
