16th March 2015
Homeowners across the UK are failing to progress up the housing ladder as quickly as they had hoped according to new research from Lloyds Bank.
The lender’s analysis found that a third of people had expecting to be further along than they are now.
This proportion is even higher for first time buyers, with almost half, at 44%, expecting to have been further along at this stage.
In addition, four in five, at 83 believe homeowners have to wait a lot longer to reach their long term family home than they would’ve done a decade ago, with just under a third of people, at 31%, worried that their own financial situation will create a barrier to moving.
Despite recent improvements in the housing market, 40% still consider the housing market to be having an impact on aspirations, although this figure has fallen from 47% since 2013 and 53% in 2012.
But almost half, at 48%, of first time buyers think that the housing market will have an impact on how long it takes them to reach their family home.
Even with anticipated delays in moving up the housing ladder, 44% expect not to make any compromises and believe their long term home is a realistic achievement and 18% expect it to be a better property than their childhood home. Over a third, at 36%, hope to achieve their housing aspirations by the time they are 45.
Andy Hulme, mortgages director at Lloyds Bank, said: “Many current homeowners clearly still feel that they are not progressing up the ladder as quickly as they would like, with higher house prices in some regions meaning people are waiting longer to move into to their long term family home.
“Despite this, almost two thirds still believe they’ll be in their long term home in less than five years, with the vast majority thinking this will only require one more move.”
However despite an increase in the number of people feeling they need a bigger property, the house that the majority of homeowners in the UK aspire to own has three bedrooms. Just under a quarter want four bedrooms, with many people aspiring to have nice gardens, conservatories and high quality kitchens and bathrooms.
In addition, some 63% of homeowners believe they will reach their long-term family home in less than five years. But almost two in three, at 64%, of those who are still waiting to be in their long term home think they will only have to make one more move to achieve their housing aspirations.
The average price of a three-bedroom home in 2014 stood at £190,420, with the average total income of the occupants being £46,140.