Nottingham Letting Agent Property Blog
Get the lastest information from a leading Letting Agent Nottingham
Fewer People Can Afford to Move Home
A recent survey found fewer people in the UK can afford to move home, and this is affecting the property market just as much as the dearth of first-time buyers as it's holding up the chain further along the line. The report was commissioned by UK property services group, Countrywide and found more than 11% of adults are unable to move home due to lack of finances, while those aged between 18 and 34 face difficulty raising a deposit.
The report surveyed 6,000 adults including those in private rented accommodation, homeowners with mortgages, owner occupiers, those with shared equity stakes, and adults living rent free. When questioned over their reasons for not wanting to move, 62% claimed they were perfectly happy staying put, while 21% couldn't afford a deposit. Another 16% could not afford mortgage repayments, world the same percentage were too daunted by the cost of moving, and 12% didn't feel secure enough in their jobs to take on a mortgage. Interestingly just 5% of those surveyed would be deterred from moving by the thought of house prices falling.
A massive 45% of adults aged between 18 and 34 can't afford a deposit to buy property, but younger adults also felt less secure about their jobs. Around a third of this age group cited mortgage repayments as being a reason for not buying a home.
Worryingly, only a third of tenants in the private rental sector are happy with their homes, and it looks as if many are reluctant renters as 56% say they can't get onto the property ladder as they cannot afford a deposit.
Before the economic downturn people moved home an average of every 12 years, but according to this new survey, this may now happen as infrequently as once every 25 years which isn't good news for the property market.