This is down from the last time the survey was run last year.
The findings of the survey run in the early weeks of this year showed 10% of the sample saying they were either “very likely” or “quite likely” to buy this year. And the most likely buyers were in the 26 to 35 year age group, currently living in a flat or maisonette.
“This pattern shows the continued need for movement in the housing market amongst young families”, commented Stephen Smith, director of housing & external affairs at Legal & General Network.
“The survey also showed that people with properties valued at over £500k were the most likely to move, and in fact there is a strong correlation between property value and wish to move, which is unsurprising given the much greater choice available in the mortgage market for more established home owners who have more significant equity in their properties.”
The reasons for buying also show the link to changing family life, with “Wanting a larger property” (39%) and “Wanting more outside space” (31%) being the two main reasons given for moving. Interestingly, “Acting while rates are low” and “worried that prices will increase” both showed strongly, cited by 19% and 15% of respondents.
The survey also showed that prospective home buyers are realistic about the difficulties they are likely to face. “Finding a suitable property” and “Finding someone to buy existing property” are the main responses here, but “Finding a mortgage I can afford” (26%) and “Finding a mortgage with the deposit I have” (19%) also show strongly.
Moving on to remortgaging, a quarter of those with a mortgage say that they are likely to remortgage in the next twelve months. “This is good news for mortgage intermediaries,” commented Smith. “Borrowers looking for a good mortgage deal in the current market will need advice from a broker who is able to advise them about how the market has changed from the last time they changed lender.”
The MIS also asked how well protected consumers were for their mortgage arrangements. Around 35% of those with mortgages say they could continue to meet their mortgage repayments for more than a year if they or their partner suffered a long-term illness or accident, which resulted in a prolonged absence from work.
“But the numbers who only have resources or policies in place which would cope with much shorter terms shows how under protected many current mortgage customers are,” commented Smith. “This is where good advice around the mortgage or remortgage event proves its value.”
