Recent figures have shown a 42% increase in divorce enquiries between March and June, compared with the same period in 2019. The data on divorces in England and Wales shows there are some 91,000 divorces on an annual basis and should the 42% increase continue, it could lead to an addition of around 38,000 couples who could be calling it a day in 2020.
What could this mean for the property market?
Put simply, the market could see a boost of around 38,000 homes entering the market if these additional divorces lead to the inevitable sale of the family home.
While this is bad news for those filing for divorce as it may drive prices slightly down, it would help boost property stock in a market that has seen a huge and much needed uplift in buyer demand since the industry lockdown was lifted in May. With the current average UK house price sat at £231,000, the addition of divorce property stock hitting the market could equate to a total value of around £9B in transactions for the nation’s property market.
Of course, not all married couples will own their home and not all of them will opt to sell it on, with some using it as assets within the divorce proceedings. However, many will take this route and with such a notable spike in the number of divorces, it’s very likely we will see a boost in the amount of stock reaching the market, and the value of homes sold. Divorce is also one of three main influencers that regularly see properties come to market, along with death and debt, as couples look to divide up their existing assets in order to move on in life.
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