What to look out for in the UK’s next homebuyers’ war
A new study by real estate consultancy Hometrack has found that the UK is in a war with homebuyer insecurity.
The study, entitled A War with Homebuyer Insult?
found that a “significant” proportion of UK homebuyters were feeling the pinch of homebuyership insecurity, especially after the Bank of England’s announcement of interest rate cuts in March.
The report also found that more than half of all homebuyings in the country are now being cancelled.
The most common reasons given for the decline in homebuying are “unpredictable”, “overvalued”, “too expensive” and “not suitable” to purchase.
Homebuyers were also more likely to consider their home a “bad investment” when they considered themselves a “buyer” in the report.
“The Homebuyership Insult Index 2016 was commissioned to provide a snapshot of how many British households are experiencing the most significant changes to their buying situation over the next five years,” the report said.
“Across a broad range of indicators, the index found that Homebuy-Insult sentiment has been declining steadily since 2015.”
“In 2015, there was a significant increase in Homebuy Insult sentiment for all age groups and for all income groups, with a majority of respondents saying that their current buying situation is “unsatisfactory” or “not suitably suitable” for their lifestyle.”
“This is likely to continue to be the case in the near future,” the Hometrick report continued.
The survey found that while most people would consider themselves a buyer if they were in a position to do so, the majority of UK homeowners had become “overly cautious” in their expectations and were unwilling to spend as much money on their homes as they should.
The average value of a home in the United Kingdom is currently £1.7m, according to the National Insurance Institute (NI).
Homebuy.com, which runs the largest real estate marketplace in the world, says that it is the “world’s most trusted marketplace” with more than 12 million homebuy deals across more than 250 countries.
But the survey also found many buyers are struggling to find homes to purchase, with many having to turn to crowdfunding to get the financing they need.
In the UK, Homebuy, which is based in the U.K., has partnered with crowdfunding platform Kickstart to help homeowners get on the property ladder, with Kickstart helping more than 30,000 UK homeowners to get on their property ladder.
In May, Kickstart launched a £10,000 funding campaign to help British homebuyners purchase their first home, with the aim of reaching 1.2 million homeowners by 2021.
“We are extremely proud of the work that Kickstart has done in the last three years to help tens of thousands of British homeowners make their dreams a reality, and the results of their campaign are yet to be seen,” the company said in a statement.
“This success will mean thousands more British homeowners will be able to buy their dream home and will further strengthen the UK economy.”
The report said that while it is “difficult” to say when this is going to happen, the “most likely outcome is that the majority (of homes) will be sold before the next financial crisis”.
“The next crisis will be in the next decade or two, but that does not mean that a new housing bubble is not already forming,” the survey found.
“However, with so many homeowners facing a downward spiral into homelessness and unemployment, this situation could be exacerbated by the next crisis, or even a recession.”
Homebuy in the US, France, Italy, and Germany Source: RTE News / Alamy Stock Photo: Alamy Homebuy Australia and New Zealand Source: Alaka Mpumalanga / Al Jazeera