According to Yorkshire’s quarterly Housebuyers Report, only one in four people (26%) are letting current house prices put them off their quest for a dream home and a move up the property ladder to add an extra bedroom to start or grow their family.
The cost of stepping up from a two bedroom terraced home to a family-sized three bedroom semi-detached home in the UK varies considerably from region to region. The average cost of stepping up across the country is around £34,000 (19% increase) but it can be as much as £80,000 (43% increase) in York or as little as £7,000 (4% increase) in Manchester.
Gary Lumby, Yorkshire Bank’s head of retail, said: “Our research shows people are not being put off by the high price of an extra bedroom, but we are seeing homebuyers become more prudent in their purchases to ensure they can afford their increased repayments.”
Family First
According to the Report, just 14% of homeowners expressed concern that they might start to struggle financially if their mortgage repayments went up by around £40-£50 a month while just 3% said they would let the extra expense of a child or the potential drop in income to one salary put them off plans to start a family or have another child.
Some 78% of homeowners still expect rates to continue to rise - as they did last week in what was the fifth rate rise since last August - and only 3% think house prices will come down over the next 12 months.
Lumby said: “If people are thinking of starting or growing their family, it could mean a drop to one income, so considering a discounted rate mortgage or one that allows payment holidays could be a sensible option. It’s crucial not to over-stretch yourself financially and the step up to a bigger home can be a big jump in price depending on where you live.”
