Steady number of people in Britain aim to move home this year, but spend less

Some 13% of British adults say they plan to move home in the next 12 months while 23% are looking to do so in the next two years, new research has found.

But they average amount they plan to spend on a new home has fallen to £312,702 compared to the first quarter of 2018, a fall of 3%, according to the latest tracker survey from AA Financial Services.

The research, which looks at plans in the months ahead, reveals some regional variations. People in Wales are most likely to want to move with 15% planning to do so in the next six months, up 8% quarter on quarter, followed by 14% in London, a rise of 6%.

Some 11% in the West Midlands are planning to move, up 5% compared with the first quarter of the year, while 9% in the East of England want to do so, but this is down 2%. Those in Yorkshire and Humber are the least likely to be moving with just 4% saying they are going to, down 5%.

The research also reveals that more people are set to switch from renting to buying. Some 28% of those renting will be buying their next home, up from 24% in the first quarter of the year. This figure is three times the reverse pattern of those going from buying to renting.

‘Demand for property does not seem to be dropping and in many parts of the country it has, in fact, become stronger. Equally encouraging is the proportion of renters who are looking to buy, suggesting that the British aspiration of owning house remains strong,’ said David Searle, managing director at AA Financial Services.

‘However, a house is ultimately worth what someone is prepared to pay, and price is one of several elements that go into a buying decision. Recent trends suggest asking prices are not being met,’ he pointed out.

‘Looking forward, we can see this is having some influence on what offer people might make in three to six months’ time. Our suggestion to market savvy home buyers is that there are also bargains to be had this spring when it comes to choosing their mortgage,’ he added.