Concerns about house prices spread across UK as housing market gathers pace
Despite talk about the London bubble, worries about high house prices and the shortage of housing has become a national issue.
April 7, 2014
House prices a problem
Concern about house prices and the availability of homes has spread across the UK, with almost all areas citing high property prices and the ability for first time buyers to get on the property ladder as a serious housing issue in the housing market.
It’s a UK wide issue
As the housing market gathers pace outside London and the South East, those in the East Midlands, Yorkshire, the North West and Wales think that house prices are a serious problem in the housing market at the moment, according to the 2014 Annual Homeowner Survey. In the North East of England and Northern Ireland, negative equity is more likely to be seen as a very serious problem than elsewhere in the UK. While the appetite to own your own home is on the rise, house prices are of particular concern to those aspiring to be homeowners.
Other key findings from the 2014 Annual Homeowner Survey include:
- Ability for First-time buyers to get onto the property ladder ( 87%) and saving for a deposit (86%) topped the list of housing concerns nationally, with most people saying they were a serious problem
- More than three quarters of homeowners (76%) think that high house prices are a problem
- More people think house prices are a more serious problem than negative equity in ten out of twelve regions of the UK
- The housing crisis is most acute in London, with more Londoners saying house prices (55%) and housing availability (44%) are very serious problems than anywhere else
- The appetite to own your own home is on the rise (In 2014, 68% of non homeowners indicate they would like to own in the future; up from 65% in January 2013)
- House prices are of particular concern for those who aspire to own (Among potential first time buyers, 52% feel house prices are a very serious problem compared with 39% of UK adults generally)
- 7 out of 10 say that being able to pay off a mortgage is a serious problem in the housing market
- Nearly two thirds ( 64%) say that stamp duty rates are a problem
- More than half of homeowners ( 53%) say that gazumping is a problem
Paula Higgins says: “Despite talk about the London bubble, worries about high house prices and the shortage of housing has become a national issue. Talk about the housing crisis has spread across the UK, as homeowners everywhere have become worried that housing is becoming unaffordable and owning their own home is becoming an impossible dream for young people. This is the true ‘cost of living’ fear – people can’t afford the roof over their head.”
Our monthly House Price Watch, released today, reports the biggest monthly rise in house prices of the past 15 months (+1%) and an annual rise in house prices of (+6.9%). Regionally, house price growth has spread to all regions of England and Wales except the North East. House prices in London continue to soar with price growth double that of any other region. Demand continues to outstrip supply and reports suggest that the proportion of properties achieving the asking price is at its highest level in a decade (over 99% in the Capital).
Paula Higgins says: ““The surge in house prices this past year is not welcome news in the Capital and it is a growing worry in other parts of the country, particularly for those hoping to buy their first home. Rising prices in London and elsewhere are due to a lack of supply as competition is fierce among buyers chasing too few homes.”
Housing Concerns (Among UK Adults): 2014 Homeowner Survey
Housing Concerns (Among Aspiring Homeowners): 2014 Homeowner Survey
Regional Focus on House Price Related Issues: 2014 Homeowner Survey
Notes to Editor
2014 Homeowner Survey
All figures in the 2014 Homeowner Survey, unless otherwise stated, are from YouGov Plc. In 2014 total sample size was 2,527 adults. Fieldwork was undertaken between 18th-20th March 2014. And in 2013 total sample size was 2056 adults. Fieldwork was undertaken between18th-21st January 2013.The surveys was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
The 2014 Homeowner survey was made possible through the sponsorship by myhomemove, the UK’s leading provider of conveyancing services and TrustMark, the Government endorsed quality mark for tradesmen.
In the survey we asked whether particular housing issues were a very serious problem, somewhat serious problem, not a very serious problem or not a problem at all in the housing market at the moment and provided a list.
House Price Watch
The HomeOwners Alliance House Price Watch, is an average of the monthly and annual house price indices from Land Registry, Nationwide, Halifax, LSL Property Services and Hometrack and is issued in the first week of every month. Every month mortgage lenders, property professionals or government publish data on what is happening in the housing market. Often their views contradict each other – due to the way they calculate their estimates. For the latest House Price Watch report, infographic and information on what goes into the House Price Watch, click here.
- The Chancellor’s dirty little Budget secret
- What can I do about negative equity?
- Shared Ownership – what to watch out for
- Government schemes to help you buy
- How to improve your credit rating before getting a mortgage
- What type of mortgage should I get?
- Mortgages made simple
- How and when should I get a mortgage?
- Do I need a mortgage broker?
- The Hidden Costs of Buying and Owning a Property
- More great guest blogs
About the HomeOwners Alliance
The HomeOwners Alliance champions the interests of Britain’s homeowners and aspiring homeowners. We are a consumer group providing helpful advice and services and acting as the voice of the homeowner in the media, lobbying for the interests of homeowners and aspiring homeowners in government, and campaigning against bad practices in industry.
We directly engage with government and the media by conducting independent research and publishing reports that promote and champion the interests of homeowners.
Previous publications include:
- Why the Mystery? – An investigation into the murky world of estate agent fees and contracts
- The Death of a Dream – the crisis of homeownership in the UK
- On the Edge – 300,000 interest-only mortgage holders set to lose their home
- Stamping on Aspiration – The astonishing impact of stamp duty on homeowners and the housing market
- The Stresses of Buying and Owning a Home
At hoa.org.uk, we provide independent advice for the key moments in owning a home, supported by legal and industry experts. Get our free newsletter with a market-wide review of house prices and all the latest tips on buying, selling, improving and managing homes. On our website you can find free independent guides, checklists and top tips.
Let us help you…
Ask an expert
Get advice from industry experts on your homeownership issues
Members of the HomeOwners Alliance can send their questions to our experts to answer, using their industry-insider experienceAsk an expert >