High house prices, the stress of moving, a shortage of suitable homes and stamp duty were all cited as reasons why homeowners had put moving plans on hold, HomeOwners Alliance reveals.
Research from HomeOwners Alliance found that one in five UK homeowners considered moving in the last two years but decided not to go ahead with plans.
Of those surveyed, 35% cited high house prices as an obstacle. HomeOwners Alliance explains that house prices have consistently outpaced wage growth, making it increasingly difficult for homeowners to afford the next step on the property ladder.
The moving process, which 35% cite as a barrier, is in need of reform, according to HomeOwners Alliance, and suggests it must be part of any serious housing policy.
It found that 27% stated a shortage of suitable homes as the reason for not going ahead with moving, while stamp duty was cited by 24% of UK homeowners.
For a family wanting to upsize to a home worth £400,000, stamp duty adds £10,000 to the upfront costs.
It reveals stamp duty is stopping around 800,000 homeowners from right-sizing.
HomeOwners Alliance chief executive officer Paula Higgins says: “Our research reveals a housing market in crisis – not because people don’t want to move, but because they simply can’t afford to.”
“With over 800,000 homeowners shelving their moving plans, we’re seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age. While house prices are difficult to control, the government does have levers it can pull and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.”
“Stamp duty is acting as a handbrake on the housing market. When a family faces a £10,000 stamp duty bill just to move to a £400,000 home – before they’ve even paid for surveys, legal fees, and removal costs – it’s no wonder a quarter of potential movers are staying put.”
“We also need the right mix of homes. Older homeowners need step-free properties, growing families need larger homes, and everyone needs options they can actually afford. Government needs to look at the existing housing stock and how to help people move into homes that better suit their needs.”
“Finally, although it may not grab headlines, making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move.”
Last month, Compare the Market found that almost half a million (469,192) homeowners who took out mortgages in 2020 are facing a substantial increase in monthly payments as they come off five-year fixed rate deals that had an average interest rate of 2.11%.
The post Homeowners staying put due to house prices, stress and stamp duty: HomeOwners Alliance appeared first on Mortgage Strategy.