One in four homeowners plan to move within the next five years and almost 10% are preparing to take their next step on the property ladder next year but face a number of barriers. A fifth of homeowners say the cost of moving is the key blocker for buying their next home, according to research from Lloyds Bank.
High stamp duty and a lack of the ‘right type’ of homes are causing the number of people thinking of moving house to fall. The report found that the inability to find the right property within budget (20%), stamp duty costs (19%) and increasing house prices (17%) are all cited as issues that stand in the way of homeowners making that next move. And broader financial pressures may also be constraining market activity, with one in three (32%) stating that they would need a significant pay rise to help make the jump. This is even more pronounced for the younger generation; over half (57%) of 25 to 34 year-olds say they need an income boost.
Aside from financial factors, the whole house moving process is also causing more people to hang on to their properties instead of selling. Two fifths of homeowners across the UK said that the process of finding a suitable home discouraged them from looking to move. Alongside, dealing with estate agents (25%), being uprooted from their local community (27%) and the uncertain economic outlook (10%) was also blamed.
The research revealed that three in five homeowners (62%) feel that moving house has become more difficult over the past 10 years and a similar proportion (59%) believe that people are now moving less frequently.
Fewer people are moving home and the homemover market is slowing. So far this year there were around 367,000 homemovers, edging down from 371,900 over the same period a year earlier, a fall of 1%. Since hitting a market low of 275,000 in the same 12 month period in 2009, the number of homemovers has grown by 33%. However, the current numbers still remain at just under half compared to 705,900 seen a decade earlier in 2007.
Original source - http://www.lloydsbankinggroup.com