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Majority of UK home buyers are less likely to buy or sell within the next 5 years despite government incentives, a new survey shows.

A recent survey has revealed that the majority (60%) of people are less likely to buy a home in the next 5 years thanks to the lasting effects of COVID-19 on the property market.

This comes with the recent data that shows UK house prices recently hit an all-time high, breaking records set in July.

The most common reasons given by UK residents for not wanting to buy or sell property include a lack of income due to furlough, job changes and job losses as well as an uncertain economy and rising house prices.

For 18  - 24-year-olds, the prospect of getting on to the property ladder seems like a distant possibility, with 66% young people saying COVID has made them less likely to get on the ladder within the next 5 years.

The findings were unveiled in a recent survey by British Homebuyers (BHB). The survey questioned nearly 500 people on their home buying attitude and experiences during the pandemic, and how the lasting effects will influence their buying decisions over the next 5 years.

Established in 2012, British Homebuyers is a home buying platform with the vision of overhauling the poor reputation of the house buying market.

Government incentives

Despite the government introducing stamp duty holidays, more than a quarter (26%) of respondents who DO plan to buy a home within the next 5 years say their budget for buying a home has decreased.

Of the respondents that bought a house during lockdown, 69% of people say the stamp duty holiday did not influence their decision to buy. Compared to just 6% of home buyers who bought because of the incentives the government put in place over lockdown.

Location is key

Not only has Coronavirus impacted the UK general public’s attitude towards buying a home, but it’s also impacted the type of property they intend to buy.

Nearly a half (44%) of UK residents said if they were to move, they would choose a rural location, away from the city centre to take advantage of green spaces and to accommodate their new lifestyle, which includes working from home.

Despite lockdown measures being lifted and the Prime Minister Boris Johnson encouraging workers to go back to the office, a quarter (25%) of those surveyed will continue to work from home full time, and a nearly a third (30%) of workers will take a blended approach of office working and home working.  

Charlie Simpson, Director at British Homebuyers said: “There are more buyers per property available on the market than ever right now, and even with the stamp duty relief behind us there are few signs of the market cooling down. This unprecedented demand, combined with a general shortage of properties for sale, has created a market where more properties than ever are selling above asking prices. Combined with the financial difficulties the pandemic has brought to so many, it’s no wonder getting on the ladder seems so unattainable.

“What this market needs is more properties for sale. And if there was ever a time to sell, that time has been the past 12 months and right now - with plenty of eager buyers wanting to find their first home.“

This was posted in Bdaily's Members' News section by Sophie Mattinson .