A generational gap is causing the UK housing market to become static, according to HSBC Bank.
This is due to the amount of young people that are incapable of buying property, and the number of older homeowners who are not willing to sell their home.This is due to the amount of young people that are incapable of buying property, and the number of older homeowners who are not willing to sell their home.
Static Housing Market Caused by Generational Gap
Peter Dockar, Head of Mortgages at HSBC, says: “Our research suggests that the current economic climate is of particular concern to younger people who either want to get on the housing ladder, or move on to a larger property.”1
Only 12% of us are considering moving house or getting onto the property ladder for the first time, revealed the 2012 Moving Home Survey.
61% of the householders not looking to buy a new property were aged 55 or over. They stated that they are happy where they are. In comparison, just 28% of respondents aged 34 and under didn’t want to move.
Of those aged 34 and under not planning to change homes, a quarter (24%) said that the main reason was that they do not have an adequate deposit, 15% are concerned about not getting a mortgage, and 14% are worried about employment prospects in new areas.
Additionally, 10% explained that they do not desire to own a property just yet.
The main incentive to buy or sell for the younger respondents was to get on the property ladder (37%), or because they need more space (27%).
Meanwhile, 36% of those aged 55 or over that were looking to sell their home claimed that the main reason for doing so was to downsize, while 33% wanted to release some or all of the equity their current property held.