Latest news with #HomeOwnersAlliance
Daily Mail
06-07-2025
- Business
- Daily Mail
A third of Britons REGRET buying their home - here's how to make sure you don't
More than a third of Britons say they have regrets about buying their home, according to new analysis by the Homeowners Alliance. The property advice website surveyed 2,000 adults and found that 37 per cent had some form of buyer's remorse and would make different decisions if they had their time again. It means that roughly 6.5 million homeowners may have regrets about the property they live in. The figure rises sharply among younger homeowners aged 18 to 34, of which nearly two-thirds expressed regrets about their property purchase. The main reasons they gave were that they picked the wrong location, or under-estimated the costs. One in ten younger homeowners regretted buying a new build, while 17 per cent said they wished they hadn't compromised on space. 'Buying a home is one of the most significant and emotional decisions people make - and our research shows many are left feeling they got it wrong,' says Paula Higgins, chief executive of HomeOwners Alliance. 'Younger buyers, in particular, are being hit hardest by the realities of the market: high prices, hidden costs, and the pressure to compromise. Londoners most unhappy with their homes Homeowners in London are more likely to have regrets about their property purchase than in other areas of the UK. More than half of London homeowners say they would now make different choices, according to the study. One in 10 London homeowners regrets buying a leasehold property, which is more than double the UK average amounting to 4 per cent of homeowners overall. However, London has more leasehold homes than other areas because of the proliferation of flats. London homeowners may also have been disappointed by the lacklustre house price growth in the capital of late. Since 2016, London house prices have risen at a rate of just 1.3 per cent a year on average compared to an inflation rate of 3.5 per cent. Higgins added: 'In London, these challenges are even more acute. 'Sky-high property prices mean buyers are often stretching their budgets to the limit and compromising to get on the ladder. 'Add to that the pressure of fast-moving deals and a competitive market, and it's no wonder that Londoners are more likely to feel they made the wrong decision.' Why don't they just move? The transaction costs involved with moving home are so high that many people are hesitant to up sticks and go, even if they are unhappy. Take the example of a family trading up from a £300,000 home to a £500,000 one. First, on the sale they will face legal fees of around £2,500. They will also need to pay the estate agent who sells their home fees of an average of 1.5 per cent, plus VAT. On a £300,000 sale that would work out at £5,400. Then there are the purchase costs, including stamp duty, a survey and finally the removal firm. Stamp duty on a £500,000 property would be £15,000, with the other costs coming to around £5,000 on average. That means £27,900 being spent on transaction costs before repairs, renovation or new furniture is factored in. 'In the past, a lot of buyers purchased a property to live in for two to three years before upsizing to a larger home,' says Nigel Bishop of buying agency Recoco Property Search. 'This strategy has become less feasible for many due to financial and wider economic challenges that are impacting on the cost of living.' If you're buying a home with the intention of staying for a long time, Bishop says it is crucial to choose somewhere that can adapt to your future needs. 'It's important than ever to choose a home that not only matches your current living arrangements but leaves room for future changes such as an addition to the family or a home office,' he says. 'Many house hunters consider carrying out extension works or changing the room layout,which makes it crucial to understand your chosen property's limitations. 'On the first viewing it is important to cover questions that determine if a planning permission would be granted, and which walls within the property are load-bearing and which ones could be taken down.' However, Bishop also points out that costs for conversions and extensions have almost doubled in recent years. 'Builders are facing higher labour and building material costs which are naturally passed on to the buyer,' he added. 'We therefore advise house hunters to gather quotes from suitable builders as early as possible and leave adequate room in their budget.' How to avoid buyer's remorse People who make a decision too quickly without fully understanding what type of property they want or the area they wish to live in could set themselves up for regret. 'We advise buyers to take into account the property's location and access to amenities,' says buying agent Bishop. 'A remote location might sound romantic at first and remains a perfect option for some buyers, but it could present logistic challenges for others further down the line, especially if quick access to shops or services such as a hospital will be required.' Unfortunately, there isn't a manual to help buyers make that all-important final decision. Some buy with their head and others buy with their heart and some struggle to make the decision at all. Perhaps as bad as buyer's remorse is decision paralysis - when someone lacks the ability to decide on something out of fear of making the wrong choice. For those who fear buyer's remorse, preparation is key. They should explore some areas where they might want to live, contact estate agents, build relationships with them and get out on viewings. They could write down the five or ten essential things they are looking for and try and tick them off with each house they view. The list might include: a quiet neighbourhood, close to a train station, a good garden, a great room for entertaining, potential to extend, close to shops and restaurants, a private parking space, and a nice view. For those that do buy a home that they later regret, there are still positives according to Higgins. 'It's worth remembering that even with these regrets, owning a home brings long-term stability and financial security,' added Higgins. 'You're building equity, not paying someone else's mortgage, and you have a roof over your head that you can call your own. 'Most homeowners adapt and grow into their homes - they decorate, renovate, build equity, and make the space work for them. With time, a house becomes more than a transaction; it becomes a home.' How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
The Independent
02-07-2025
- Business
- The Independent
More than a third of homeowners ‘have regrets about their property'
More than a third (37%) of homeowners regret aspects of the home they bought, or would make different decisions if buying again, a survey indicates. Among younger adults, nearly two-thirds (63%) of homeowners aged 34 and under expressed regrets about their property purchase. This compared with just under half (48%) of those aged 35 to 54 and just over a fifth (22%) of homeowners aged 55-plus. Regrets included underestimating the full costs of buying or renovating, dissatisfaction with the location, and having to make compromises on indoor or outdoor space. London homeowners were particularly likely to have regrets about their property purchase, with just over half (51%) saying they would now make different choices. Paula Higgins, chief executive of HomeOwners Alliance, which commissioned the research, said: 'Buying a home is one of the most significant and emotional decisions people make, and our research shows many are left feeling they got it wrong. 'Younger buyers, in particular, are being hit hardest by the realities of the market: high prices, hidden costs, and the pressure to compromise. 'In London, these challenges are even more acute. Sky-high property prices mean buyers are often stretching their budgets to the limit and compromising to get on the ladder.' Ms Higgins added: 'It's worth remembering that even with these regrets, owning a home brings long-term stability and financial security. 'You're building equity, not paying someone else's mortgage, and you have a roof over your head that you can call your own. 'Most homeowners adapt and grow into their homes – they decorate, renovate, build equity, and make the space work for them. 'With time, a house becomes more than a transaction; it becomes a home.' The research was carried out for HomeOwners Alliance in April by Opinium, surveying more than 1,200 homeowners across the UK.
Yahoo
18-06-2025
- Business
- Yahoo
House prices, stamp duty and stress: costs blamed for 3 million cancelled home moves across UK
In advance of the Government's Spending Review on Wednesday 11 June, and the publication of its much-anticipated housing strategy, the HomeOwners Alliance has revealed that 3.3 million homeowners have cancelled plans to move in the past two years. More than 800,000 potential moves were delayed or ditched due to stamp duty costs alone, according to a survey by the property advice website. The most common reasons for changing plans were costs — with high house prices the most signifcant barrier cited by 35 per cent of homeowners. The average London home now costs £552,000, according to the Office of National Statistics, which is almost 14 times the average London salary. Stamp duty tax was also flagged by almost a quarter (24 per cent) of surveyed homeowners as their main reason for putting off moves. While often referred to as a tax on buyers in London and the South East, where property prices are higher, stamp duty tax, which is paid to the government on completion, still seems to be an issue that concerns people across the UK. For a family wanting to upsize to a home worth £400,000, stamp duty adds £10,000 to upfront costs and, in London, where the average property price is over £100,000 more, this figure is significantly higher. Stamp duty on the average London home (£552,000), for instance, equates to a bill of £17,600. 'Stamp duty is acting as a handbrake on the housing market,' says Paula Higgins, CEO of HomeOwners Alliance. 'When a family faces a £10,000 stamp duty bill just to move to a £400,000 home — before they've even paid for surveys, legal fees, and removal costs — it's no wonder a quarter of potential movers are staying put.' The HomeOwners Alliance believes scrapping stamp duty tax for everyone buying a home to live in would do a lot to spur people into purchasing their next property and resurrect the housing market, freeing up much-needed stock for families and downsizers. Also highlighted as a factor was the stress of moving in itself, with 35 per cent of respondents saying this was deterring them from moving forward with their plans. Last year, according to Quick Move Now, 31.3 per cent of property sales fell through prior to completion. Stricter mortgage criteria, problems thrown up during conveyancing and surveys, plus issues and delays in getting essential paperwork from freeholders, make the moving process fraught and a stress that many people choose to avoid — even if their current housing situation isn't ideal. What's more, 28 per cent of respondents said that moving costs were too high; when you're paying out large sums for solicitors, surveys and removal companies, this only adds to the pressure of the process. 'Making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move,' explains Higgins. Other issues flagged in the survey include a lack of motivation, with 27 per cent highlighting the shortage of suitable homes as a reason for them ditching future plans. This shortage was seen across the board, from families looking for larger houses with more bedrooms, to step-free homes for older people wanting to downsize, as well as affordable properties for first-time buyers getting a foot on the ladder. 'Our research reveals a housing market in crisis — not because people don't want to move, but because they simply can't afford to. With over 800,000 homeowners shelving their moving plans [due to stamp duty alone], we're seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age,' adds Higgins. 'While house prices are difficult to control, the government does have levers it can pull, and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.' The HomeOwners Alliance research surveyed a nationally-representative sample of 2,000 UK adults.
Yahoo
21-05-2025
- Business
- Yahoo
Five charts that show why Britain's home ownership dream is dead
Aspiration for home ownership in Britain has fallen to its lowest level in a decade, a landmark survey shows. Research by the HomeOwners Alliance lobby group found concerns over soaring stamp duty bills, leasehold fears and difficulties with downsizing are the worst they have been since 2015. It means just two thirds (64pc) of would-be first-time buyers think owning a property is in reach, compared to 71pc last year. From the whittling away of government support to the postcode lottery of housing availability, Telegraph Money lays bare the death of Britain's homeownership dream in five charts. The drop in housing aspiration coincides with Labour's decision not to extend the first-time buyer stamp duty relief introduced by Liz Truss during her short premiership. Other government-backed schemes have either been scrapped or had their benefits stripped back. For example, the Help to Buy Isa previously allowed savers to put in £200 each month which the Government would then top up by 25pc (capped at £3,000) when they bought their first home. The scheme was closed to new applicants in November 2019. Meanwhile, the lifetime Isa (Lisa) allows savers to put in £4,000 each year which the Government will add a 25pc bonus to, up to a maximum of £1,000 per year. However, it can only be used towards properties that cost £450,000 or less. This threshold has remained frozen since it was introduced in 2017 despite years of house price growth. Rosie Hooper, financial planner at Quilter Cheviot, said: 'Younger people's hopes of getting on the housing ladder have been quietly chipped away as government support has faded. 'What we're left with is a generation facing record house prices, high interest rates and far less support than those who came before them.' Over-60s control more than half of all housing wealth in Britain, accounting for some £2.89 trillion in bricks and mortar. However, those wishing to downsize – and free up property for younger families – find there are scant homes into which they can move. The National House-Building Council warned in 2023 that bungalows were 'on the critically endangered list' as developers prioritised squeezing more properties on to plots of land. Lucian Cook, of estate agent Savills, said the blockades on downsizing were preventing younger generations 'trading up the housing ladder.' He added: 'Despite many older homeowners holding on to properties that are too big for their needs, there is little incentive for them to move during their lifetime.' Savills research shows boomers made up 44p of homeowners but just 18.5pc of buyers last years. It means just one in 57 moved homes. The proportion of people concerned about the leasehold system rose by 22 percentage points to 64pc – the largest increase noted in the survey. Despite Government pledges to reform the system, leaseholders remain trapped in homes they cannot sell due to rapidly rising ground rents and uncapped service charges. Katie Kendrick, of the National Leasehold Campaign Group, said: 'Leasehold has become one of the main reasons for broken chains in the buying and selling process, with leasehold sales taking much longer to complete. Every day in the National Leasehold Campaign, we have reports of sales falling through. It's heartbreaking.' Timothy Douglas, of estate agent trade body Propertymark, said buyers were more aware of issues with leasehold properties thanks to 'education, legislation and news surrounding the subject'. It is up there with Britain's most hated taxes. So it's little surprise stamp duty topped the list of concerns noted by the HomeOwners Alliance survey. Almost two thirds of respondents said they were worried about stamp duty costs, compared to half in 2018. Analysis by estate agency platform Alto found that 41pc of estate agents has seen a drop in first-time buyer registrations, while 18pc recorded a fall in viewings. One agent told the company: 'The stamp duty shake-up was the final straw. It tipped already stretched buyers over the edge.' The tax threshold was lifted by the Conservatives in 2022, but reverted to its previous lower level in April. The average first-time buyer now needs to scrape together thousands of pounds in addition to a house deposit. Alice Haine, of investment platform Bestinvest, said: 'For some aspiring homeowners, that jump in costs may prove to be a step too far. When you consider that rental rates have also increased sharply, it has become harder and harder for aspiring homeowners to set aside the amount they need to secure a home.' The HomeOwners Alliance survey found that housing worries were more acute in Wales than in any other region. Nine in 10 respondents were concerned about first-time buyers' ability to get on the housing ladder in Wales, compared to 76pc in the north of England. Welsh respondents were also far more worried about stamp duty rates and negative equity than anywhere else in Britain. Katherine Binns, of the HomeOwners Alliance, said: 'In Wales, higher concern around negative equity points to fragility in the market and a growing sense that homeownership is becoming less secure or attainable.' By contrast, the leasehold and freehold system was mentioned as a serious issue by 70pc of respondents in the South, compared to 60pc in Scotland. However, Scottish respondents were more likely to report low housing availability than those in any other region. Ms Binns added: 'Major cities like Edinburgh and Glasgow have declared housing emergencies due to severe shortages of affordable housing, escalating private rents and increasing homelessness. 'Given the South and South East's higher proportion of flats, it's no surprise that many buyers find themselves in a Catch-22: a flat may be the affordable option, but they're reluctant to purchase a leasehold with all its complexities and costs. Residents are more exposed to challenges like escalating ground rents and complex service charges, making leasehold reform a pressing regional issue.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
21-05-2025
- Business
- Telegraph
Five charts that show why Britain's home ownership dream is dead
Aspiration for home ownership in Britain has fallen to its lowest level in a decade, a landmark survey shows. Research by the HomeOwners Alliance lobby group found concerns over soaring stamp duty bills, leasehold fears and difficulties with downsizing are the worst they have been since 2015. It means just two thirds (64pc) of would-be first-time buyers think owning a property is in reach, compared to 71pc last year. From the whittling away of government support to the postcode lottery of housing availability, Telegraph Money lays bare the death of Britain's homeownership dream in five charts. One: Government support has been whittled away The drop in housing aspiration coincides with Labour's decision not to extend the first-time buyer stamp duty relief introduced by Liz Truss during her short premiership. Other government-backed schemes have either been scrapped or had their benefits stripped back. For example, the Help to Buy Isa previously allowed savers to put in £200 each month which the Government would then top up by 25pc (capped at £3,000) when they bought their first home. The scheme was closed to new applicants in November 2019. Meanwhile, the lifetime Isa (Lisa) allows savers to put in £4,000 each year which the Government will add a 25pc bonus to, up to a maximum of £1,000 per year. However, it can only be used towards properties that cost £450,000 or less. This threshold has remained frozen since it was introduced in 2017 despite years of house price growth. Rosie Hooper, financial planner at Quilter Cheviot, said: 'Younger people's hopes of getting on the housing ladder have been quietly chipped away as government support has faded. 'What we're left with is a generation facing record house prices, high interest rates and far less support than those who came before them.' Two: Downsizing is too difficult Over-60s control more than half of all housing wealth in Britain, accounting for some £2.89 trillion in bricks and mortar. However, those wishing to downsize – and free up property for younger families – find there are scant homes into which they can move. The National House-Building Council warned in 2023 that bungalows were ' on the critically endangered list ' as developers prioritised squeezing more properties on to plots of land. Lucian Cook, of estate agent Savills, said the blockades on downsizing were preventing younger generations 'trading up the housing ladder.' He added: 'Despite many older homeowners holding on to properties that are too big for their needs, there is little incentive for them to move during their lifetime.' Savills research shows boomers made up 44p of homeowners but just 18.5pc of buyers last years. It means just one in 57 moved homes. Three: Leasehold is collapsing The proportion of people concerned about the leasehold system rose by 22 percentage points to 64pc – the largest increase noted in the survey. Despite Government pledges to reform the system, leaseholders remain trapped in homes they cannot sell due to rapidly rising ground rents and uncapped service charges. Katie Kendrick, of the National Leasehold Campaign Group, said: ' Leasehold has become one of the main reasons for broken chains in the buying and selling process, with leasehold sales taking much longer to complete. Every day in the National Leasehold Campaign, we have reports of sales falling through. It's heartbreaking.' Timothy Douglas, of estate agent trade body Propertymark, said buyers were more aware of issues with leasehold properties thanks to 'education, legislation and news surrounding the subject'. Four: Stamp duty bills are too high It is up there with Britain's most hated taxes. So it's little surprise stamp duty topped the list of concerns noted by the HomeOwners Alliance survey. Almost two thirds of respondents said they were worried about stamp duty costs, compared to half in 2018. Analysis by estate agency platform Alto found that 41pc of estate agents has seen a drop in first-time buyer registrations, while 18pc recorded a fall in viewings. One agent told the company: 'The stamp duty shake-up was the final straw. It tipped already stretched buyers over the edge.' The tax threshold was lifted by the Conservatives in 2022, but reverted to its previous lower level in April. The average first-time buyer now needs to scrape together thousands of pounds in addition to a house deposit. Alice Haine, of investment platform Bestinvest, said: 'For some aspiring homeowners, that jump in costs may prove to be a step too far. When you consider that rental rates have also increased sharply, it has become harder and harder for aspiring homeowners to set aside the amount they need to secure a home.' Five: Availability is a postcode lottery The HomeOwners Alliance survey found that housing worries were more acute in Wales than in any other region. Nine in 10 respondents were concerned about first-time buyers' ability to get on the housing ladder in Wales, compared to 76pc in the north of England. Welsh respondents were also far more worried about stamp duty rates and negative equity than anywhere else in Britain. Katherine Binns, of the HomeOwners Alliance, said: 'In Wales, higher concern around negative equity points to fragility in the market and a growing sense that homeownership is becoming less secure or attainable.' By contrast, the leasehold and freehold system was mentioned as a serious issue by 70pc of respondents in the South, compared to 60pc in Scotland. However, Scottish respondents were more likely to report low housing availability than those in any other region. Ms Binns added: 'Major cities like Edinburgh and Glasgow have declared housing emergencies due to severe shortages of affordable housing, escalating private rents and increasing homelessness. 'Given the South and South East's higher proportion of flats, it's no surprise that many buyers find themselves in a Catch-22: a flat may be the affordable option, but they're reluctant to purchase a leasehold with all its complexities and costs. Residents are more exposed to challenges like escalating ground rents and complex service charges, making leasehold reform a pressing regional issue.'
