‘Movers’ are facing their own issues on the property ladder
New study shows first-time buyers are not the only group hit by upheaval in the market
New findings serve to illustrate in stark terms how certain crucial rungs of our traditional property ladder have been removed. File photograph: Moodboard/Brand X/Getty
With most of the media’s attention focused on the plight of first-time buyers frozen out of the housing market due to the shortage in affordable supply, you could be forgiven for thinking that “movers”, ie those looking to trade up or down, are in an infinitely better position; one of choice, at least.
However, the results of the latest Bank of Ireland “Mover Barometer” show that this group is facing problems of its own when it comes to putting the right roof over its head, and at the right price.
According to Bank of Ireland’s research, 35 per cent of the 202 property movers it surveyed found the cost of a new home to be their single biggest challenge, while 23 per cent of respondents cited the speed of selling their existing home as their greatest concern.
The findings serve to illustrate in stark terms how certain crucial rungs of our traditional property ladder have been removed.
The imposition of tighter mortgage-lending rules by the Central Bank may certainly be saving us all from a repeat of the credit-fuelled catastrophe we experienced in 2008, but it seems the measures continue to limit the ability of first-time buyers to acquire homes that movers are looking to trade up from.
The knock-on effect of this particular breakdown in the property buying chain is being felt by downsizers or so-called “empty nesters” too, as the pool of movers who might bid for their home is reduced.
Interestingly the survey, conducted in partnership with Red C, reported that 23 per cent of movers cited a lack of supply in the area they would like to buy in as being the greatest single challenge they faced in finding a new home.
And lest anyone suggest that movers want bigger homes simply for the sake of it, Bank of Ireland’s research shows that just under half of them (45 per cent) are moving because they need more space for their growing family. Just in excess of one-quarter (26 per cent) are looking to live in a better location, according to the survey, while 13 per cent want to downsize.