Recent research has found that those considering buying or moving home have been thinking of doing so for an average of 3.2 years! What’s holding people back, well, unsurprisingly, high property prices, affording a deposit and associated costs are perceived as the biggest barriers.
Some 51% of are considering buying a home or trading-up the property ladder but, 61% can’t see that they’ll be in a position to do so in the next 12 months and 21% worry they may never afford to buy or move home.
For 22% it’s high property prices in the area they want to buy that prevents them from doing so, for 18% it is getting enough money together for a deposit and for 11% it is the associated costs of buying a property and moving.
Other barriers to moving home include a lack of availability of the type of property in the area they wish to live, affecting 11%, while 19% cited job or income insecurity and the ongoing costs of running a home including mortgage repayments, utility bills and council tax.
The survey found that while high property prices are a key obstacle for all would be home movers, other difficulties varied considerably with age. For example, 45 to 54 year old cite a poor credit history or credit score and job/income insecurity among their top three barriers to buying or moving home.
For those in the 55 to 64 and 65 plus age brackets, the main obstacle they face is a lack of availability of the type of housing they wish to move to in the area they want to live in.
With house price inflation exceeding wage growth, it’s even harder to save enough money for a deposit, potentially putting home ownership out of reach for many people, but there has been a resurgence in the number of lenders offering low-deposit mortgages. Most lenders now have a mortgage product aimed at home buyers with a deposit of 10% of the purchase price of their property and, subject to stricter eligibility criteria, some lenders offer 5% deposit mortgages.