Homeowners continue to 'trade up' thanks to rise in Mortgage Approvals
ï One of the largest studies of homeowners in the UK reveals just under half (45%) of existing homeowners ëtraded upí to a more expensive property when moving
ï Royal Mail commissioned Ipsos MORI to conduct the third Royal Mail Home Movers Study. Report reveals the latest trends in the home moving market through the experiences of Redirection customers
ï Most common price increases were £50,001 - £75,000 (12% of those who paid more) or £250,001+ (also 12%)
ï Three fifths (61%) of those who paid more borrowed against a mortgage to pay for the additional cost
ï A quarter (24%) saved up to £25,000 to help with the purchase, while a similar proportion (25%) took between 5 and 10 years to accumulate the funds with 16% banking money for over 10 years
ï 2% of homeowners were prompted to buy earlier due to the changes in stamp duty in December 2014
ï Two fifths (44%) admitted that they had to wait longer to move than they wanted. Among those who waited over half waited up to a year (56%) to find their new home
ï Once a new property was found, 8 in 10 (80%) were pleased with their new home
Royal Mail commissioned Ipsos MORI to conduct a biannual report of people across the UK who have moved home. With over 12,000 respondents, the study is one of the largest investigations into home movers experiences and attitudes towards the property market.
The research comes as Royal Mail encourages people across the UK to redirect their mail when moving home in order to protect themselves against identity fraud. If people donít take out a Redirection Service when changing address, their mail is likely to land on their old doorstep, with no control over who opens it or uses the information or contents it contains. A Redirection Service is the best way to ensure that all personal details are taken with you when you move home.
According to the latest figures, homeowners continue to trade up when moving with nearly half (45%) moving to a more expensive home (down from 51% last year). Highlighting a split in the property market, the most common price increase for new homes was £50,001 - £75,000 and £250,000+ (both 12%).
Compared to last year, more homeowners are securing the additional funds they need against a mortgage (61% up from 58% in March/April last year) reflecting a rise in the number of mortgage approvalsπ. More than one in ten (15% down from 18% in spring last year) saved up the money with just 2% borrowing the money from family or friends.
Of those who saved up the money, a quarter (24%) put away up to £25,000 towards the cost of their new home.
Surprisingly, 6% admitted that they had saved more than £250,001.
A quarter (25%) admitted that it took between 5 - 10 years to save up the additional money to move while for one in six (16%) it took more than a decade to raise the cash.
Last Decemberís stamp duty changes prompted 2% of homeowners to move their home buying plans forward with 38% bringing speeding the process up by as much as three months.
Finding the right property
When it comes to finding the right property, two fifths of new homeowners (44%) admitted that they had to wait longer to move than they wanted with 56% waiting up to a year and 7% searching for more than five years.
A third (32%) blamed a shortage of properties while 22% had a previous purchase fall through.
The perfect home
Once the perfect property was found, eight in ten (80%) said they were pleased with their new home. 25-34 year old were the happiest (83%) followed by 65 -74 year olds (81%). Almost a quarter (23%) also said they knew before they stepped into their house that it was the right home for them ñ more so for women (24%) than men (22%).
Jim Conning, Managing Director of Data Services, at Royal Mail, said; ìRoyal Mailís Home Movers Study of Redirection customers provides a fascinating snapshot of how the UK home moving market is evolving and changing.
ìIt is interesting to see that consumers are still keen to move up the ladder, a rise that appears to be in-line with the news that mortgage approvals are at a six month high. Despite this increase, saving remains a consistent companion for homeowners even if the process is getting slower rather than quicker. One thing is clear though, once a perfect home has been found, it is smiles all round.î
To find a suitable mortgage for your new home, compare mortgages with MoneyExpert.