Consumer Attitudes towards Property Ownership - UK - May 2017

Consumer Attitudes towards Property Ownership - UK - May 2017

Jun 2017 Mintel Wealth ManagementN/A Price :
$ 2842

Property continues to be an obsession for much of the population, with people both emotionally and financially invested in their homes. However, property ownership is becoming a distant dream for hopeful buyers, as rising prices and a shortage of available homes make it difficult for people to access the housing market. Despite this, Millennials remain optimistic about owning property in the future.

Table of Content

OVERVIEW
What you need to know
Report scope

EXECUTIVE SUMMARY
The market
Ownership continues to decline
Figure 1: Trends in tenure, 1980-2015/16
Average age of FTBs is 32
Figure 2: Average age of first-time buyers in the UK, 2003/04-2015/16
Average house prices at record level
Figure 3: House price growth, January 2006-July 2016
Rental prices rising
Figure 4: Index of private housing rental prices in Great Britain, January 2011-February 2017
Fixing the broken housing market
The consumer
‘My house is my future’ represents biggest target group
Figure 5: Target groups based on attitudes towards property ownership, February 2017
Home-buying market driven by FTBs
Figure 6: Intentions to purchase a property within the next three years, February 2017
Two in five look for information on their local housing market
Figure 7: Engagement with various aspects of the housing market, February 2017
Three quarters rely on online sources
Figure 8: Source of information when looking for information on property and housing, February 2017
Majority are happy with their living situation…
Figure 9: Satisfaction with housing situation and other lifestyle factors, February 2017
Is the process of buying/selling stagnating the market?
Figure 10: Attitudes towards the housing market, February 2017
What we think

ISSUES AND INSIGHTS
Millennials optimistic about property ownership
The facts
The implications
The digitisation of the property marketplace
The facts
The implications
Mortgage holders more engaged with the value of their home
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Is property ownership falling out of favour?
Average age of FTBs is 32
Residential property sales have recovered over the last few years
Fixing the broken housing market

HOUSING DEMOGRAPHICS
Proportion of owner-occupiers drops as renters increase
Figure 11: Trends in tenure, 1980-2015/16
Three out of five over-55s own their home
Figure 12: Housing situation, by age, February 2017
Average age of FTBs is 32
Figure 13: Average age of first-time buyers in the UK, 2003/04-2015/16
Home ownership offers more stability
Figure 14: Housing situation, by length of time in current property, February 2017
Household sizes are falling
Figure 15: Household size, February 2017

MARKET ENVIRONMENT FOR PROPERTY OWNERSHIP
Residential property sales have recovered over the last few years
Figure 16: Residential property sales, quarterly 12-month rolling, Q1 2000-Q3 2016
Average house prices at record level
Figure 17: House price growth, January 2006-July 2016
Low interest rates incentivising people to buy now
Figure 18: Secured lending interest rates, January 2012-February 2017
Rental prices rising
Figure 19: Index of private housing rental prices in Great Britain, January 2011-February 2017

REGULATORY AND LEGISLATIVE CONTEXT
Fixing the broken housing market
Plan for the right homes in the right places
Build homes faster
Diversify the housing market
Help people now
Tax relief changes dampen BTL popularity
Support for FTBs
Help to Buy Equity Loan scheme
Right to Buy/Right to Acquire
Shared Ownership
Starter Homes Scheme
Lifetime ISA

THE CONSUMER – WHAT YOU NEED TO KNOW
People have a strong emotional connection to their home
One in five plan to buy in the next three years
Digitisation of the property marketplace
Majority are happy with their housing situation
People feel negative about accessing the housing market

ATTITUDES TOWARDS PROPERTY OWNERSHIP
Half think owning a home should be a financial priority
People have a strong emotional connection to their home…
Figure 20: Attitudes towards property ownership, February 2017
…but there’s a lack of engagement with its value
Idealistic view of using property equity for retirement
Figure 21: Attitudes towards property ownership, by housing situation, February 2017
People see the benefits to renting…
…but these decrease with time
Figure 22: People who are happy with their housing situation, by length of time in current property, February 2017

ATTITUDES TOWARDS PROPERTY OWNERSHIP – ATTITUDINAL GROUPS
‘My house is my future’ represents biggest target group
Figure 23: Target groups based on attitudes towards property ownership, February 2017
My house is my future
Figure 24: Attitudes towards property ownership, by target groups based on attitudes towards property ownership, February 2017
My house is my heart
My house is my shelter
Figure 25: Housing situation, by target groups based on attitudes towards property ownership, February 2017

PROPERTY PURCHASING PLANS
One in five plan to buy in the next three years
Figure 26: Intentions to purchase a property within the next three years, February 2017
Market driven by FTBs
Figure 27: Intentions to purchase a property within the next three years, February 2017
25-34-year-olds most likely looking to buy
Figure 28: Intentions to purchase a property within the next three years, by age, February 2017

INTEREST IN THE HOUSING MARKET
Two in five look for information on their local housing market
Figure 29: Engagement with various aspects of the housing market, February 2017
Inertia means lack of engagement with mortgage products/rates
Mortgage holders are most engaged
Figure 30: Engagement with various aspects of the housing market, ‘Once a year or more’, February 2017
‘My house is my future’ group are more engaged
Figure 31: Engagement with various aspects of the housing market, by target groups based on attitudes towards property ownership, February 2017

SOURCES OF INFORMATION
Three quarters rely on online sources
Figure 32: Source of information when looking for information on property and housing, February 2017
Short tenancies drive engagement among renters
Figure 33: Source of information when looking for information on property and housing, by housing situation, February 2017
Digitisation of the property marketplace
But, how much of this is just being nosey?
Figure 34: Source of information when looking for information on property and housing, by intentions to purchase, February 2017
Older consumers prefer more traditional sources
Figure 35: Source of information when looking for information on property and housing, by age, February 2017
25-34-year-olds reliant on a range of sources
Figure 36: Number of sources used to look for property and housing information in the last 3 years, February 2017

SATISFACTION WITH HOUSING SITUATION
Majority are happy with their living situation
Figure 37: Satisfaction with housing situation and other lifestyle factors, February 2017
Homeowners are most satisfied…
…whilst private renters are the least happy
Local Authority renters buck the trend
Figure 38: Satisfaction with housing situation and other lifestyle factors, by housing situation, February 2017

ATTITUDES TOWARDS THE HOUSING MARKET
People feel negative towards the housing market
People want more help
Figure 39: Attitudes towards the housing market, February 2017
Is the process of buying/selling stagnating the market?
Young people have grand designs for property ownership
Figure 40: Attitudes towards the housing market, by age, February 2017
Younger consumers see the benefits in owning multiple properties

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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