The Barclays Property Insights report found that 11% of homeowners were considering buying an additional property in the next two years.
Running costs were the main concern around owning a second home, cited by 28%. Nearly a quarter said a barrier would be the time needed to manage a property, and 21% mentioned stamp duty costs.
Of those who had considered or already bought a second home, the average deposit needed was £50,340, stamp duty costs were £29,849, and third-party costs totalled £5,698. This brought the total cost of an additional home to £85,887 on average.
Many owners did not want the responsibility of being a landlord, with 69% of respondents saying they did not want to be a landlord because of costs and complexity. A further 48% felt owning a second home was financially risky in the current economic climate.
Barclays’ research also noted a change in attitude towards buying property as an investment. Some 36% believed this added pressure to the housing market, and 34% felt it would be better to invest in stock instead of property.
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Older homeowners aspire to be mortgage-free
Some 52% of respondents aged 62-80 said they were already or expected to be mortgage-free once they retired. Around three-quarters said they did not plan to use their property wealth to fund retirement, and 31% said their home was part of their family legacy rather than a financial asset.
Just 8% said they had or planned to move into a smaller property to release funds for retirement, and 5% expected to use equity release.
Of the over-60s who did buy a new home, they tended to choose houses over smaller properties like flats or bungalows. Barclays said this was partially due to the distribution of housing in the UK, particularly the shortage of bungalows.
The older homeowners with more money tended to buy higher-value homes compared to younger homeowners. Barclays found that the properties purchased by those aged over 60 were 25.1% more expensive than purchases by those aged 28-43, and 79.3% more expensive than those bought by those under 27.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “For most, property is about far more than finances. It provides stability and plays a key role in family legacy, and many retirees do not need to supplement their income through property.
“‘Right-sizing’ still has an important part to play in unlocking housing supply, but it will only gain traction if there are clear and meaningful incentives.”
