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Stagnant market discouraging homemovers

vickyhartley
Written By:
Posted:
July 13, 2011
Updated:
July 13, 2011

UK homeowners have become far less mobile since the hosuing boom ended, with fewer owner-occupiers moving in the last 12 months than the previous 15 years.

Government survey, The English Housing Report, which gathered information on public attitudes to housing in England, showed the number of owner-occupiers moving in 2009-10 was 63% lower than two years previously.

The survey starkly illustrates the impact on household mobility of a stagnant housing market, which has seen a low level of transactions since 2008. Just under 1.8 million households moved into their current home in the last 12 months, 10% fewer than in the preceding year.

Those aged 16 to 24 are most likely to have moved recently, with almost half, or 45%, changing their home in the last 12 months. In contrast, only 2% of householders aged 65 or over have moved in the last year.

Those who have moved, or just over one-third of households cited job-related, family or personal reasons, including marriage, divorce and separation.

Housing was cited as the government’s highest priority by just 5% of respondents, way behind health on 41% and education at 33% and also behind help for industry in third place, with 6% saying it should be the highest priority.

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Most respondents thought the government should tackle affordability by favouring financial assistance to first-time buyers at 29%, where 23% support increased access to mortgages.

The research showed 19% thought the government should give more money to housing associations and local authorities to build more social homes for people on low incomes.

Over half those surveyed think the government should give both advice and financial assistance to people at risk of losing their home after mortgage payment problems.

However, 42% said the government should provide advice but not financial assistance and owner-occupiers favoured financial support for those facing possession less than renters. But, only 5% of people overall believe the government should do nothing to help owner-occupiers at risk of losing their home.

The Council of Mortgage Lenders, in its latest News and Views newsletter, said: “The survey shows how the economic recession and the credit crunch have slowed down the appetite and ability of people to move home. It provides a stark confirmation of the affordability problems for first-time buyers, with home-ownership heavily skewed towards the middle-aged and the elderly.”

The trade body added: “However challenging it is for policy-makers to help devise solutions, and for would-be first-time buyers to step on to the housing ladder, they must recognise the strength of aspirations to home-ownership and help households achieve their goals where possible.”

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