More People Looking To Move House This Year
Published: 16 February 2011
By MoneyHighStreet Staff Leave a Comment
Updated: 17 February 2011
Moving house has slumped in recent years but 2011 may be a turning point with 30% of people planning to move this year.
This jump in the number of people planning to move house this year is three times more than the level at the height of the economic downturn.
Research from Clydesdale & Yorkshire Banks shows a degree of encouraging optimisim for the proeprty market albeit for the plan to come to reality of course a housebuyer has to have a number of criteria falling into place, not least access to affordable mortgage finance.
With this increase in the desire to move, there has been a corresponding downturn in home improvements. According to the research only 17% of those surveyed plan to improve or extend their home compared to 54% in October 2008.
Changing circumstances are the biggest driver for moving, for others it is to find their dream home, look to relocate or move because they are expanding their family.
As Steve Reid, Retail Director for Clydesdale Bank comments “While this research must be balanced with the prevailing caution in the market, the findings are encouraging, particularly as we head towards Easter which traditionally sees an increase in house-buying activity.”
MoneyHighStreet.com comment: Clearly on the face of it this is encouraging, however, we can’t lose sight of the fact that inflation soared to 4% in January and the Bank of England governor Mervyn King signalled yesterday that there could be up to three interest rate hikes this year.
This coupled with the expectation that the cost of living, including day to food items such as pasta, alcohol, tobacco and of course petrol prices, will continue to increase during the year will no doubt hit homeowners hard.
A rise in interest rates, as early as next month, will result in many homeowners being hit with higher monthly mortgage repayments too. Will they then be able to afford the increased costs generally associated with moving house?