The number of homeowners who believe that their home will increase in value this year has increased to 51 per cent, according to Countrywide plc’s third YouGov Survey, a jump of 17 per cent on results from November 2012.
It also found that over half (56 per cent) of 18 to 24 year olds believe they are likely to use the Help to Buy scheme, compared to around a quarter of those aged between 25 and 54.
Countrywide plc commissioned the YouGov research which surveyed over 2,000 Great British adults, including private rental tenants, homeowners with mortgages, shared equity stakeholders, owner occupiers and those living rent-free. The findings identified improved consumer confidence in the housing market when compared to the results of the last study in November 2012. Highlights from the latest research include:
HOUSE PRICES
- In every GB region, more people think house prices will increase than decrease over the next 12 months. Expectation of rising prices has grown most quickly in the East of England (29 per cent in 2013 compared to 61 per cent in 2014) and the North East (19 per cent in 2013 compared to 44 per cent in 2014).
- A higher proportion (67 per cent) of homeowners living in London, expect the value of their home will increase in 12 months time, when compared to any other region in Great Britain (GB).
HELP TO BUY
- 1 in 3 GB adults who plan on buying their first home or moving home within the next three years would be likely to use the Help to Buy scheme.
- Only 3 per cent of people aged over 55 consider themselves likely to use Help to Buy meaning the initiative is proving extremely attractive to young voters. Equally renters who are increasingly but not exclusively the young are interested in using the scheme.
HOME OWNERSHIP
- 28 per cent of GB adults planning on buying their first home or moving home stated that the main reason for purchasing is to get on the housing ladder. This is the highest amongst 18-24 year olds (45 per cent) and women (31 per cent). 17 per cent stated it was because they needed more space.
- 65 per cent of respondents aged 45+ said that being happy with where they are living prevented them from buying a new property or moving home in the next three years, compared to only 40 per cent of 18-34 year olds.
- Moving to a better location drives half the amount of moves in London and the South of England compared with other areas of the country. The cost of trading up means 1 in 10 moves in the Capital is driven by the desire to move to a better area compared to 1 in 5 in the North West and Midlands.
FLEXIBILITY
- 13 per cent of GB adults would not be willing to compromise on anything when buying a property in the next three years, this is highest amongst those aged between 45-54 (19 per cent) and women (17 per cent).
- Only 7 per cent of women would be unwilling to compromise on their commute when buying a property compared to 14 per cent of men.
YOUNGER GENERATION
- 30 per cent of 18-24 year olds and 16 per cent of 25-34 year olds plan to purchase their first property in the next three years.
- There has been a substantial decrease in 25-34 year olds stating that deposit affordability is preventing them from buying at this time (21 per cent in December 2013 vs. 41 per cent in November 2012).
- The younger generation are most flexible when it comes to compromising on buying their first or next home. Only 7 per cent of people aged under 25 are unwilling to compromise on anything compared with 1 in 5 (19 per cent) of those aged between 45-54 years old.
RENTAL SECTOR
- Private renters are more willing to compromise than homeowners when looking for their next property. 10 per cent of homeowners with a mortgage are unwilling to compromise on any aspect of the property compared with just 6 per cent of private renters.
Grenville Turner, Chief Executive of Countrywide plc, commented: “The survey findings reaffirm what our property experts’ view on a daily basis when dealing with many people looking to move home. There are signs of a rebalance in the housing market as recovery in housing volumes gathers momentum. Greater availability of higher loan-to-value mortgages, improving economic conditions, lower unemployment and the implementation of Government backed schemes such as Help to Buy, have given consumers reasons to feel confident. It is significant that 1 in 3 GB adults who plan on buying their first home or moving home within the next three years would be likely to use the Help to Buy scheme.”
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