Survey shows housing crisis deepening in SW
The housing crisis is deepening as concerns mount about the availability and quality of homes, while increasing numbers aspire to own the roof over their head, according to the 2016 Homeowner Survey conducted by YouGov for HomeOwners Alliance and BLP Insurance.
The survey, in its fourth year, polls over 2000 UK adults on the housing concerns and latest trends affecting homeowners and those aspiring to own.
The survey shows that the appetite amongst UK residents to own their home has been steadily rising over the past four years. Almost three quarters (73%) of non-homeowners now say they would like to own their home compared to 69% last year, 68% in 2014 and 65% in 2013.
While the desire to own is rising, the ability for first-time buyers to get on the housing ladder and saving for a deposit remain top concerns nationally (among UK adults, 82% and 80% respectively say these are serious problems).
On top of this, the proportion of aspiring homeowners who say that the availability of housing is a serious problem has jumped to 78%, up from 72% last year. Aspiring homeowners are also increasingly concerned about the quality of housing, with 60% saying it is a serious problem.
However, there is a noticeable drop in concern about the rates of stamp duty, in the wake of the government’s reforms of the stamp duty system. Concern about negative equity has slumped among the UK overall to 44% from 64% two years ago, as house prices have continued to rise.
Paula Higgins, the Chief Executive of the HomeOwners Alliance, said: “Despite a blizzard of government initiatives aimed at helping homeowners, the housing crisis is deepening across the country, with ever more non-homeowners wanting their own home, and ever greater concern about the lack of housing. Many government policies have boosted demand for homes, but what this survey shows is that the real problem is the desperate shortage of houses. Until the government tackles the fundamental issue that we just don’t have enough good quality homes, the housing crisis will continue to deepen and a generation will continue to have their dreams of homeownership crushed.”
Kim Vernau, Chief Executive of BLP Insurance says: “We are now at a critical juncture for the construction industry and housing market. The Government urgently needs to speed up the delivery of new homes for aspiring first time buyers. Tenures of all types are required across the country and affordable housing and social housing should also be a priority. Balancing these competing demands is a challenging task, particularly given the shortage of labour skills that we are currently witnessing in the construction industry. This is likely to get worse in the absence of key initiatives to help address this critical issue and the new Housing & Planning Bill and threat of a potential Brexit could tilt the construction labour market even further off balance.”
Key Findings from the 2016 Annual Homeowner Survey:
· Aspiration to own your home is rising. Almost three-quarters (73%) of non-homeowners say they would like to own a home in the future, compared to 69% last year, 68% in 2014 and 65% in 2013. Figure 1 Aspiration to Own
· However, difficulties related to buying your first home top the list of housing concerns nationally – 82% of UK adults say the ability to get on the property ladder is a serious problem and 80% say saving for a deposit is a serious problem. This is followed by house prices (78% say it is a serious problem) and the availability of housing (72% say it is a serious problem). See Figure 2 for full breakdown of housing concerns
· Nearly 8 out of 10 aspiring first-time buyers are worried about the shortage of housing and concern is deepening over time. 78% of aspiring first-time buyers say availability of housing is a serious problem, up from 72% in 2014/ 2015. See Figure 3 & 4 to compare the housing concerns over the last 3 years amongst UK adults and aspiring first time buyers.
o Regionally, concern about availability of housing is most pronounced in London and has risen in recent years. 86% in London say availability of housing is a serious problem up from 80% a year ago and up from 78% in 2014.
· Quality of homes is an increasing concern, particularly among aspiring first-time buyers. 52% of UK adults say quality of housing is a serious problem up from 49% last year. Concerns have also risen among aspiring first-time buyers with 60% saying it is a serious problem up from 57% a year ago. See Figure 3&4: Housing Concerns Trend and Housing Concerns Trend Among Aspiring Homeowners
o Regionally, quality of housing concerns are greater in the North East (62%), Northern Ireland (62%), London (60%) and the East Midlands (59%). Concern about the quality of homes has risen in each of these areas over the past year. See Figure 5&6 2016 Regional Housing Concerns and Regional Housing Concerns Trend
· People are less worried about the cost of moving than they were a few years ago. The proportion saying these are serious problems: stamp duty rates (52% vs 64%), property solicitor/ conveyancing fees (50% vs 61%) and estate agent fees (54% vs 64%) have all dropped since 2014.
· Concern about house prices has nudged upwards over the past year (78% vs 76% of UK adults say it is a serious problem). Regionally, the issue is seen to be most acute in London and worsening where 88% say house prices are a serious problem, up from 87% last year and 84% in 2014. See Figure 5&6 2016 Regional Housing Concerns and Regional Housing Concerns Trend
