Research from the HomeOwners Alliance (HOA), which surveyed around 2,000 adults – which included 1,269 homeowners and 236 homeowners who have put off moving in the past two years – found that 35% of those who delayed their move did so due to house prices.
A further 35% cited the stress of moving, 28% pointed to moving costs, 27% said their primary reason was a lack of suitable housing and 24% said stamp duty was the main factor in delaying moving.
Approximately 22% said the cost of living meant they could not afford to, with 12% saying they cannot save enough for a deposit. Meanwhile, 10% and 9% said it would be too difficult to get a new mortgage or too difficult to increase the value of their mortgage respectively.
The HOA said housing supply was a key issue, whether it was larger properties for growing families, properties suitable for older people or affordable options in the right locations, and it was “forcing homeowners to stay put”.
The firm added that on the stamp duty side, for a family wanting to upsize to a home worth £400,000, stamp duty would add around £10,000 to the upfront costs.
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The HOA said stamp duty was acting as a barrier for around 800,000 homeowners.
‘A housing market in crisis’
Paula Higgins, CEO of the HOA, said: “Our research reveals a housing market in crisis – not because people don’t want to move, but because they simply can’t afford to. With over 800,000 homeowners shelving their moving plans, we’re seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age. While house prices are difficult to control, the Government does have levers it can pull and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.
“Stamp duty is acting as a handbrake on the housing market. When a family faces a £10,000 stamp duty bill just to move to a £400,000 home – before they’ve even paid for surveys, legal fees, and removal costs – it’s no wonder a quarter of potential movers are staying put.
“We also need the right mix of homes. Older homeowners need step-free properties, growing families need larger homes, and everyone needs options they can actually afford. The Government needs to look at the existing housing stock and build homes that better suit their needs. Finally, although it may not grab headlines, making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Nearly a fifth of homeowners have delayed moving in past two years
