The findings of the survey run in the early weeks of this year showed 10% of the sample saying they were either very likely or quite likely to buy this year. And the most likely buyers were in the 26 to 35 year age group, currently living in a flat or maisonette.
The MIS was first published 15 years ago in the summer of 1996 and has been conducted regularly since then to measure home owners expectations and is based on a sample of 1,000 adults.
'This pattern shows the continued need for movement in the housing market amongst young families,’ said Stephen Smith, director of housing and external affairs at Legal & General Network.
'The survey also showed that people with properties valued at over £500,000 were the most likely to move, and in fact there is a strong correlation between property value and wish to move, which is unsurprising given the much greater choice available in the mortgage market for more established home owners who have more significant equity in their properties,’ he added.
The reasons for buying also show the link to changing family life, with wanting a larger property the reason for moving for 39%, and wanting more outside space the reason for 31%. Also, acting while rates are low and being worried that prices will increase both showed strongly, cited by 19% and 15% of respondents.
The survey also showed that prospective home buyers are realistic about the difficulties they are likely to face. Finding a suitable property and finding someone to buy an existing property were the main reasons given. While finding a mortgage I can afford, was cited by 26%, and finding a mortgage with the deposit I have, by 19%.
The research also found that a quarter of those with a mortgage say that they are likely to re-mortgage in the next twelve months. ‘This is good news for mortgage intermediaries. Borrowers looking for a good mortgage deal in the current market will need advice from a broker who is able to advise them about how the market has changed from the last time they changed lender,’ explained Smith.
The MIS also asked how well protected consumers were for their mortgage arrangements with 35% of those with mortgages say they could continue to meet their mortgage repayments for more than a year if they or their partner suffered a long term illness or accident, which resulted in a prolonged absence from work.
'But the numbers who only have resources or policies in place which would cope with much shorter terms shows how under protected many current mortgage customers are. This is where good advice around the mortgage or re-mortgage event proves its value,’ added Smith.
