The HomeOwner Survey 2018 - Issue, trends and how we feel about our homes

7 Housing ladder broken at every step Almost three in four non-homeowners (74%), want to own their home but cannot afford to do so; equating to 7.5 million aspiring homeowner s 1.  The main reasons cited for not being able to buy include: property prices are too high (66%), difficulty saving for a deposit (58%) and difficulty getting a new mortgage (31%). Nearly a quarter (23%) of homeowners age 18-54 considered a move in the past two years but did not do so; equating to 1.2 million homeowners 2  Affordability is also the biggest barrier for second steppers (58%).  Half of second-steppers (50%) were moving to find a bigger property, suggesting these homeowners may be in homes too small for their needs.  Stamp duty is a bigger concern for second- steppers than for any other segment of the market (24%). 1 million older homeowners nowhere to move to.  One in five (20%) homeowners aged 55 or over considered a move in the past two years but have not done so; with lack of suitable housing (46%) the main barrier for not following through with their plans; equating to 1 million homeowner s 3 . The ‘pain points’ of selling More than 300K property transaction s 1 collapse every year due to broken chains and buyers changing their mind, costing affected sellers on average £2.7K and in total £400 million .  One in five home sellers (20%) have had a sale falling through.  69% of collapsed sales are due to buyer related reasons, including the buyer changing his mind/ finding another property (39%) and the buyer’s finances not being in order (28%).  Sales falling through further up in a chain accounted for 20% of collapsed sales.  51% of those whose property sale failed incurred an average of £2.7K in costs  Nearly one in ten (8%) sellers with a failed sale was a victim of ‘gazundering’ – the buyer lowering their offer just before exchange of contracts. Initiatives to improve the homebuying & homeselling process Strong support for initiatives to improve the process including licensing of estate agents (82%), homebuyers being required to show proof of funds before making an offer to buy (80%) and reservation agreements (65%) requiring both sides to put down a non-refundable deposit. “A comprehensively integrated approach is needed to cure the ills of the housing market. Government policies such as the abolition of stamp duty for first time buyers may have created positive headlines but it ignores the needs of large swathes of potential buyers. By recognising the interconnected nature of the housing market and implementing policies that will positively affect all, real progress can be made. One of the biggest challenges facing the sector is incentivising elderly individuals living in large, former family homes to downsize. Constructing an adequate stock of purposely-built homes for last time buyers, that meets their specific needs, has the potential to free up housing stock for first and second time buyers and inject much needed impetus into the whole market.” Kim Vernau, Chief Executive BLP Insurance “ The current system has created a fundamental power imbalance between the seller and the buyer, with the seller often at the buyer’s mercy during what is often the largest financial decision of their lives. Sellers should be able to proceed with the sale of their property knowing what price they will receive and feeling assured that the sale will go through.” Samantha Kempe, Co-Founder IMMO.co.uk