Homeowners are gradually starting to feel more optimistic about the time it will take them to move into their long-term family home, according to new research from Lloyds Bank.
Although 81% of homeowners believe that they will have to wait longer to achieve their long-term aspiration than they would have a decade ago, the report shows that the number of homeowners thinking that has fallen steadily from 88% in 2012.
Similarly, whilst this year’s study shows that 41% believe the uncertain housing market has had an impact on housing aspirations, this number has fallen from 53% in 2012.
However, 33% said that they had expected to be further along the housing ladder than they currently are. The figure is higher for first-time buyers, with 43% saying they were lagging behind their expectations. By comparison, only 20% of those on their fourth move or more felt they were not where they had expected to be on the housing ladder.
74% believe that they will achieve their long-term family home in no more than two more moves.
Andrew Mason, Lloyds Bank’s mortgage products director, said: “There’s still a perception amongst a large number of homeowners that their long-term aspirational home seems far off and they are not moving up the housing ladder as quickly as they had hoped, although this perception has been gradually improving over the last few years.
“Those who are further up the property ladder appear to be more satisfied with their progression, whereas those who are just starting out may feel that they have a mountain to climb before they reach their long-term home. Despite that, first-time buyers are in a slightly better position to move than they were a year ago and are the group most likely to be on the move.”
A three-bedroom home was the most popular choice to aspire to for a long-term home, with 40% saying that was their ideal home. 24% said that they wanted a four bedroom home. The most popular ‘extras’ on homeowners’ wish lists were gardens, garage space and conservatories.
The average price of a three bedroom home in 2016 stood at £222,745, with the average total income of the occupants being £51,494.
However, regionally there are large variations on both house prices and income which affect affordability of these properties. In London (£485,050) and the South East (£317,355), house prices are significantly higher. However, average incomes of the applicants are also higher too (£97,358 and £65,095 respectively), helping affordability in those regions. Despite this, London and the South East remain the least affordable regions for these homes and as a result applicants are on average 36 years old, which is a year older than the national average.
In contrast, long-term family homes in the North and Wales are more affordable with the average three bed property costing £142,506 in the North and £145,500 in Wales. Average incomes of the applicants are lower (£41,088 and £39,155 respectively), but long-term homes are still more affordable in both regions. As a result the average age of the applicants is lower than the national average (35) in the North and Wales (both 34).
The most popular reasons cited for wanting to move to a new property were wanting to move to a new area (40%), looking to downsize (38%), current property too small (27%) and wanting a bigger garden (14%).
More than half had been in their current property for more than a decade and the average length of time homeowners had been in their current property was 7.7 years. For first-time buyers this was 6.9 years, for second steppers 8.1 years, for third steppers 7.9 years and for fourth steppers 8.2 years.