Homeowners reluctant to move suggests Legal & General research.
15 March 2011
The latest Moving Intentions Survey (MIS) carried out by Legal & General shows that 30% of the adults questioned for the survey believe they will buy a property over the next twelve months. This is down from the last time the survey was run last year.
The MIS was first published 15 years ago in the summer of 1996 and has been conducted regularly since then to measure home owners expectations and is based on a sample of 1,000 adults.
The findings of the survey run in the early weeks of this year showed 10% of the sample saying they were either "very likely" or "quite likely" to buy this year. And the most likely buyers were in the 26 to 35 year age group, currently living in a flat or maisonette. The graph attached shows the likelihood of those surveyed buying a property in the next 12 months.
"This pattern shows the continued need for movement in the housing market amongst young families", commented Stephen Smith, Director of Housing & External Affairs at Legal & General Network. "The survey also showed that people with properties valued at over £500k were the most likely to move, and in fact there is a strong correlation between property value and wish to move, which is unsurprising given the much greater choice available in the mortgage market for more established home owners who have more significant equity in their properties".
The reasons for buying also show the link to changing family life, with "Wanting a larger property"(39%) and "Wanting more outside space" (31%) being the two main reasons given for moving. Interestingly, "Acting while rates are low" and "worried that prices will increase" both showed strongly, cited by 19% and 15% of respondents. The graph attached shows the reason for buying a property.
The survey also showed that prospective home buyers are realistic about the difficulties they are likely to face. "Finding a suitable property" and "Finding someone to buy existing property" are the main responses here, but "Finding a mortgage I can afford" (26%) and "Finding a mortgage with the deposit I have" (19%) also show strongly.
Moving on to re-mortgaging, a quarter of those with a mortgage say that they are likely to re-mortgage in the next twelve months. "This is good news for mortgage intermediaries", comments Smith. "Borrowers looking for a good mortgage deal in the current market will need advice from a broker who is able to advise them about how the market has changed from the last time they changed lender."
The MIS also asked how well protected consumers were for their mortgage arrangements. 35% of those with mortgages say they could continue to meet their mortgage repayments for more than a year if they or their partner suffered a long-term illness or accident, which resulted in a prolonged absence from work. "But the numbers who only have resources or policies in place which would cope with much shorter terms shows how under protected many current mortgage customers are" comments Smith. "This is where good advice around the mortgage or re-mortgage event proves its value".
Notes to editors
The information contained in this press release is intended solely for journalists.
The Legal & General Network
The Legal & General Network Moving Intentions Survey carried out Bdifferent Limited
An online survey of 1000 members of the general public (Social Class ABC1C2) conducted between 4-13th January 2011.
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