Homeowners growing in confidence
Homeowners are starting to feel more optimistic about the time it will take them to move into their long-term family home, according to Lloyds Bank.
Despite four out of five homeowners (81%) telling the lender they will have to wait longer to achieve their long-term aspiration than they would have a decade ago, that figure has fallen steadily from 88% in 2012.
Similarly, although this year’s study shows that four in 10 (41%) believe the uncertain housing market has had an impact on housing aspirations, this number has actually fallen from 53% in 2012.
Almost three quarters (74%) believe that they will achieve their long-term family home in no more than two more moves.
Andrew Mason, Lloyds Bank mortgage products director, said: “There’s still a perception amongst a large number of homeowners that their long-term aspirational home seems far off and they are not moving up the housing ladder as quickly as they had hoped, although this perception has been gradually improving over the last few years.”
Three bedroom homes most popular
A three-bedroom home was the most popular choice to aspire to for a long-term home, with two in five (40%) saying that was their ideal home.
The average price of a three bedroom home in 2016 stood at £222,745, with the average total income of the occupants being £51,494. However, regionally there are large variations on both house prices and income which affect affordability of these properties.
In London (£485,050) and the South East (£317,355), house prices are significantly higher. However, average incomes of the applicants are also higher too (£97,358 and £65,095 respectively), helping affordability in those regions. Despite this, London and the South East remain the least affordable regions for these homes and as a result applicants are on average 36 years old, which is a year older than the national average.
In contrast, long-term family homes in the North and Wales are more affordable with the average three bed property costing £142,506 in the North and £145,500 in Wales.
Average incomes of the applicants are lower (£41,088 and £39,155 respectively), but long-term homes are still more affordable in both regions. As a result the average age of the applicants is lower than the national average (35) in the North and Wales (both 34).