The survey also revealed that 67% of respondents regard their current house as a ‘home’ first and foremost and an investment second.
Those surveyed aged between 24-32 years were the most likely to see their home as an investment with 42% of them suggesting they regard their current home as a stepping stone to something better, but the majority of that age group (53%) still say they will not be looking to move home in the next five years.
Respondents in the North West seemed the most willing to trade up with 53% suggesting they regard their current house as a both a home and an investment while only 14% in the North East felt their current house was anything but a home.
The main factor for this unwillingness to move seems to be the uncertain economic outlook.
Roughly one in two UK mortgage holders suggest they are worried about the prospect of increased SVRs from lenders with respondents in Wales showing the most concern (61%), while those in East Anglia showing the least (13%).
Even so only one in two (52%) of those questioned for Legal & General’s Mortgage Mood survey professed to their home being ‘ideally suited’ to their circumstances with respondents from Wales (87%) being the most happy and those in Yorkshire and the Humber (34%) the least satisfied.
Ben Thompson, managing director of Legal & General Mortgage Club, said: "There was a period of time through the noughties where it was possible to take the view that you couldn't lose from buying property and in fact many saw their homes as investments more than simply a home.
"Times have changed. What is clear is that there is significant pent up demand for existing homeowners to move house and secure a property that matches their needs and requirements, and yet nearly three quarters of those surveyed no longer plan to move. I strongly suspect that this would not be their choice, either they are clinging on to the home they have got, or they will simply improve as opposed to move."
Thompson said this reflected many current factors including wider economic conditions and the squeeze on income but that stamp duty was an increasingly important factor.
He said: "The tax rose in earnest at the end of the 90s, since which time house price rises continued nicely until 2008. If someone wanted to move, although stamp duty was expensive, it could be paid ‘invisibly’ from equity in the property. Today, in many areas we have seen housing equity fall in real terms by up to 20% and of course for many that means stamp duty has to be saved up for and paid out of your own pocket.
"This is simply too much money for many that would ordinarily want to move. The market is therefore pretty stuck. Consequently there is less choice for buyers lower down in the chain and of course less employment created from house moves.
"We understand fully why stamp duty receipts are important. However, does the Government really want immobility in the housing market with the impact this will have on the wider economy? Clearly UK homeowners are staying put in the medium term and this may have a significant impact on the future shape of the UK housing market.”
