The latest report from Lloyds shows homeowners are now more optimistic that they will own their long-term home in two more moves.
Lloyds Bank research shows for many first time buyer families their first property is only one of many and they will move to their long-term home of which the most popular is three bedrooms.
Almost three quarters expect to achieve their goal in the next two moves although 81% believe they will wait longer to do this than a decade ago, down from 88% in 2012.
Of the reasons homeowners cited for moving to a new property 40% said they wanted to move to a new area, 38% were looking to downsize, 27% said their current property too small and 14% wanted a bigger garden.
The research from Lloyds shows that 41% of the respondents believed the current uncertain housing market has had an impact on housing aspirations and this figure is down from 53% in 2012.
With competition from buy-to-let investors and reduced supply of suitable properties, prospective first time buyers must continue renting and saving for a bigger deposit.
Three bedroom homes the most popular
For the aspiring home mover a three bedroom property is the most popular choice with 40% saying this would be their ideal home.
In 2016 the average price of a three bedroom home is £222,745, with the average total income of the occupants being £51,494.
Of the respondents 24% said they wanted a four bedroom home and the most popular extras on their list is a garden, garage space and conservatory.
Andrew Mason, Lloyds Bank Mortgage Products Director, said for a large number of homeowners there is a perception their long-term aspirational home seems far off and they are not moving up the housing ladder as quickly as they had hoped.
This varied with the type of buyer with 43% of first time buyers felt they were lagging behind their expectations may feel that they have a mountain to climb before they reach their long-term home.
Mr Mason said home movers on their fourth home or more only 20% felt they were not where they had expected to be on the housing ladder and appear to be more satisfied with their progression.
Help for first time buyers can come from family members as the equity release buyer can using a lifetime mortgage to access wealth and give a child the deposit on their first or second home.
Large regional variations
Regionally there is a significant difference in both house prices and income which affect affordability of these properties.
For a three bedroom home in London the price is £485,050 compares to the North of England with an average price of only £142,506.
Add another bedroom and in London you pay an extra £179,783 with an average price of £664,833 for a four bedroom home compared to the North of England paying an extra £80,689 with an average price of £223,195.
The following table shows how the price of three and four bedroom properties varies in different regions:
| Region | Three Bedrooms |
Four Bedrooms |
|---|---|---|
| Greater London | £485,050 | £664,833 |
| South East | £317,355 | £466,059 |
| South West | £228,912 | £342,163 |
| East Anglia | £216,148 | £326,389 |
| West Midlands | £175,700 | £287,322 |
| East Midlands | £164,586 | £266,165 |
| North West | £161,738 | £261,646 |
| Scoltand | £165,676 | £252,833 |
| Yorks and the Humber | £153,502 | £249,816 |
| Wales | £145,500 | £238,762 |
| North | £142,506 | £223,195 |
| Northern Ireland | £114,940 | £174,388 |
Although house prices are higher in the south average incomes are also higher and for homeowners in a three bedroom house in London this is £97,358, the South east is £65,095 helping affordability in these regions.
Without family help to upsize, the only option is for remortgage buyers in London is to stay in their existing home and continue saving more for a bigger deposit.
For a four bedroom house in London the average income is higher at £129,359 and in the South east this is £92,209.
In other areas such as Wales where property prices are £145,500 for a three bedroom property the average income is £39,155 and in a four bedroom home the price increases to £238,762 with average incomes of £57,869.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to pay for care at home or buy a more expensive home.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart.
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