70%_of UK homeowners feel the current value of their home is 'about right', Legal & General Mortgage Mood Survey reveals.
11 April 2013
The latest Legal & General Mortgage Mood survey reveals that despite negative sentiment over recent times 70% of UK homeowners believe the current price of their property reflects its actual value. Meanwhile 5% of those surveyed cite their current house price is actually above what they might expect. These findings form part of
Legal & General Mortgage Club's latest Mortgage Mood survey, the quarterly study which looks at the attitude of British homeowners and first-time buyers on a range of mortgage related issues.
The regions most content with their current valuations were the East Midlands and the South West, with 84% and 83% (respectively) of homeowners feeling their current valuation to be fair. However, property owners in Scotland were less impressed with their house price value, with 55% of respondents saying it was lower than they expected.
The survey also looked at the number of homeowners who intend to stay in their current property in retirement, with 39% of respondents across the UK indicating that they do plan to live in their current home when they leave work. At 50%, Yorkshire and Humber had the highest proportion of homeowners planning to stay in their current home.
Ben Thompson, MD Legal & General Mortgage Club says:
"It is certainly a good sign that the majority of homeowners feel their current property value reflects a 'fair' price. Our New Normal in the Housing Market report estimated that by 2015 house prices should return to their 2007 peak levels, with the market starting to gain momentum mid-2013. Therefore the fact that homeowners are already more positive about the real value of their property is encouraging and perhaps illustrates the unrealistic prices we were seeing
"Value is all down to demand, so this belief that homes are valued 'about right' highlights a shift to a more realistic attitude. Hopefully a combination of nascent buyer and seller optimism, alongside an increased variety in mortgage products, will help to signal a much needed rally in the market in the coming months. These results also highlight that price is not the main issue for lack of market dynamism. An increase in both the availability of suitable housing and appropriate mortgage finance is needed to unclog the system and get things flowing freely. "
"It is also interesting to see that many respondents intend to stay in their current home after retirement. The common view is that many people have used their property as a way of funding retirement and that by downsizing they can meet the needs of their post-working lives. It would seem that this is not the case for a large number of the people we surveyed."
Table 1: Do you feel that the value of your current home is......?
|TOTAL||London||South East||Soth West||Wales||East Anglia||East Mids||West Mids||Yorks/ Humber||North West||North|
|Way below what you would expect||4%||-||2%||3%||4%||-||-||8%||6%||9%||-|
|Below what you would expect||19%||14%||9%||11%||42%||15%||14%||37%||17%||20%||23%|
|Above what you would expect||5%||6%||12%||-||-||-||2%||2%||4%||4%||-|
|Way above what you would expect||1%||3%||3%||-||-||-||-||-||-||-||-|
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