Author: Danske Bank
Published on 20 October 2014 10:00 AM
Home ownership is still seen as a sign of accomplishment in life, according to a new survey carried out by Danske Bank in partnership with PropertyPal.com.
79% of those surveyed see owning their own home as a symbol that they have accomplished something in life and, despite the housing market crash, the majority (77%) still see houses as a good long term investment. Almost half of respondents (47%) aspire to own a second home and say this is mainly to fund retirement rather than for recreational purposes.
However, 66% of respondents expect the next generation to be one of renters rather than buyers, a trend already common in other European countries such as Germany.
Just over half of respondents expect house prices to rise in the near future, with 18% expecting little movement in the next year. Only 8% believe there will be another house price bubble.
The impact of the house price crash in recent years is perhaps still evident in the fact that a third (31%) of respondents who were buying or selling were looking for a less expensive house. Over half of those thinking of selling had delayed putting their house on the market due to economic conditions.
Tony Wilcox, Managing Director of Personal Banking at Danske Bank, said:
“While the effects of the economic conditions of the last few years are still evident in some of the survey results, there is definitely more confidence in the market and that is something we see reflected in the increase in demand for mortgage appointments and in the number of applications we are receiving. It is also consistent with the latest figures from the Council of Mortgage Lenders which revealed that the number of first time buyers was up 33 per cent in quarter one this year compared to the same period last year, while the number of loans taken out by home movers rose by 38%.
“We want to help those customers who are ready to get a foot on the property ladder, switch their mortgage or move house and have the expertise and product offering available for them. We are still offering up to 95% loan to value mortgages for both first time buyers and mortgage switchers, have removed arrangement fees on residential mortgages and are currently offering £500 cashback to customers when they take out a mortgage with us.
“As part of our commitment to make things easier for our customers we are also holding a number of Mortgage Open Nights during October, where customers can get expert advice from a wide range of local experts.”