Mortgage approval surge fuels 'evolving market'
A new report from Royal Mail has found that almost half of those who move home are trading up to a bigger, more expensive property.
The data revealed that as many as 45% are able to move to a more expensive home after securing the additional funds they need against a mortgage (61% up from 58% in March/April last year), reflecting a rise in the number of mortgage approvals.
More than one in ten (15% down from 18% in spring last year) saved up the money with just 2% borrowing the money from family or friends.
The Royal Mail commissioned Ipsos MORI report contained over 12,000 respondents, one of the largest investigations into home movers experiences and attitudes towards the property market.
Highlighting a split in the property market, the most common price increase for new homes was £50,001 - £75,000 and £250,000+ (both 12%).
Of those who saved up the money, a quarter (24%) put away up to £25,000 towards the cost of their new home. Surprisingly, 6% admitted that they had saved more than £250,000.
A quarter (25%) admitted that it took between 5 - 10 years to save up the additional money to move while for one in six (16%) it took more than a decade to raise the cash.
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Last December’s stamp duty changes prompted 2% of homeowners to move their home buying plans forward with 38% bringing speeding the process up by as much as three months.
When it comes to finding the right property, two fifths of new homeowners (44%) admitted that they had to wait longer to move than they wanted with 56% waiting up to a year and 7% searching for more than five years.
A third (32%) blamed a shortage of properties while 22% had a previous purchase fall through.
Jim Conning, Managing Director of Data Services, at Royal Mail, said: “Royal Mail’s Home Movers Study of Redirection customers provides a fascinating snapshot of how the UK home moving market is evolving and changing.
It is interesting to see that consumers are still keen to move up the ladder, a rise that appears to be in-line with the news that mortgage approvals are at a six month high. Despite this increase, saving remains a consistent companion for homeowners even if the process is getting slower rather than quicker. One thing is clear though, once a perfect home has been found, it is smiles all round.”