More than 7.5 million UK adults have put off plans to buy property in 2017, according to an analysis by Fasthomes.org.
One in six of those who had put plans to move on hold cited Brexit was the main reason.
When residents were asked why they curbed plans to buy or move last year, answers included increasing house prices, the cost of living and difficulty obtaining a mortgage or re-mortgaging.
However, shockingly, more than 1 million UK adults (one in six) admitted cancelling plans due to the vote to leave the European Union (15%). Fasthomes.org cited the following reasons for people changing their plans to buy or to move in 2017 include:
- Rising house prices (26%);
- Rising cost of living (25%);
- Difficulty in getting a mortgage or re-mortgaging (25%);
- A change in needs (24%);
- Economic outlook for jobs/pay (21%);
- Brexit vote (15%);
- Stamp duty (9%).
Utilising data from the HomeOwners Alliance, Fasthomes.org assessed the 12 main regions within the UK, and whether homeowner’s plans to move or buy have changed over the last 12 months since the referendum (June 2016 to June 2017).
The results concluded that the North East were most concerned about the property market, with 27% of homeowners admitting they are less likely to move. The North East was followed by Northern Ireland (21%) and Yorkshire and the Humber (19%).
Fast Homes concluded that homeowner’s in the East Midlands are least affected, with 11% saying they are less likely to move now. Scotland, the South West and London followed, with 13% of homeowner’s likely to have curbed plans to move in 2017.
Fasthomes.org found that young adults, aged between 18 and 24 years old, are less likely to be affected by property market concerns, with only 11% likely to curb plans to buy or move home. This tends to increase with age, though, as homeowners (and aspiring homeowners) aged between 25-34 and 45-54 years old are more likely to stay put, with 17% choosing to change their plans.
Paula Higgins, Chief Executive of the HomeOwners Alliance said, “Our research demonstrates that both first-time buyers and those who already own a home are choosing to play it safe in these uncertain times. We can expect further uncertainty in the market until the UK’s future relationship with Europe is more clearly defined. People putting off plans to buy or sell chokes housing supply and generates pent up demand. The housing market needs certainty in order to be able to function most efficiently.”