51% of UK homeowners are not considering moving house for the foreseeable future due to concerns over mortgage rates, according to new research by self storage provider, Ready Steady Store.
The research, which surveyed over 1,000 homeowners across East Midlands and England, revealed that a further 57% of homeowners are ‘put off’ moving house due to concerns over the cost of living crisis and rising mortgage rates, with inflation having reached its highest rate in more than 40 years.
Interestingly, 45% of respondents advised they would have moved house within the next 2 years if mortgage rates and living costs weren’t a growing concern, with a further 25% revealing they would have considered a move.
Furthermore, 59% of respondents believe that current economic decline will lead to a housing market crash, with 71% of homeowners advising they would or would maybe consider alternative options for creating more space within their existing home as opposed to putting their house on the market.
Other key take outs from the research include:
- An increase in space [57%], change in location [37%] and a bigger garden or outdoor space [33%] are the leading drivers for homeowners considering a move.
- 66% of homeowners across East and West Midlands are put off from moving house due to rising mortgage rates, compared to 70% in South England and 72% in North England.
- 40% of respondents would or would maybe consider moving their belongings into storage to create more space.
- 32% of homeowners believe it would cost £100 - £200 per month to store the contents of a three-bedroom house, with 28% believing it would cost £201 - £300.
This research comes as the Bank of England announced an increase in the base rate to a concerning 4.5% on 11th May 2023, with some Financial Analysts predicting the BoE rate could now peak at 5%.
Discussing the research, Mehran Charania, Director of Ready Steady Store, said: “This data is incredibly telling and effectively highlights how the UK housing market is likely to experience a clear downturn by the close of 2023, with the latest data revealing house prices are currently falling 0.8% month-on-month.
For most homeowners, tying into a mortgage rate well over 4% combined with a vast increase in living costs simply isn’t affordable, meaning more and more will look for alternative options within their existing home, such as creating more space or refurbishing existing rooms into more usable areas, like a home office. Here, external storage solutions can not only offer a cost-effective, but also flexible option, enabling homeowners to jump on the market as and when it becomes more viable for them to move house.”
Established in 2005, Ready Steady Store is a fast-growing self-storage provider with cost effective storage units located in the Midlands, and South, North and East of England.
For more information, visit: https://www.readysteadystore.com