Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Affordability and Misconceptions Hold Back UK Homebuyers, Survey Finds

A new report from the HomeOwners Alliance reveals that millions of potential homebuyers in the UK are losing confidence in their ability to get on the property ladder. The annual HomeOwner Survey highlights that both affordability issues and outdated assumptions about deposits and mortgages are deterring many from buying.

The survey found that 73% of non-homeowners want to own their home, but 52% of those aspiring to buy doubt they will ever be able to do so. Aspiring first-time buyers are particularly pessimistic, with 51% believing now is a bad time to buy, compared to 35% of British adults overall.

Financial and Process Barriers

The survey identifies several financial barriers preventing people from buying or moving home. Three quarters of respondents said that improvements in mortgage rates, deposit requirements, and stamp duty would make moving easier. Specifically, 42% of homeowners said lower mortgage rates would encourage them to move, rising to 50% among those with mortgages. Lower stamp duty was cited by 36%, and 31% pointed to lower deposit requirements as helpful.

Beyond financial concerns, 37% of homeowners said that reforms to the buying and selling process would make moving easier. One in four respondents wanted transactions to become legally binding earlier to reduce fall-throughs, and 20% wanted a quicker, more digital process.

Older Homeowners and Housing Supply

The survey also highlights that a shortage of suitable housing is restricting movement, especially among older homeowners. Almost a third (32%) of homeowners aged over 55 said that more appropriate homes, such as bungalows or later-life housing, would help them move, compared to 27% of homeowners overall.

The findings suggest that a lack of confidence among buyers is being compounded by misunderstandings about mortgage requirements, such as the size of deposits needed or the timing of obtaining a decision in principle.

These insights are particularly relevant for UK letting agents and inventory clerks, as ongoing affordability challenges and misconceptions may continue to impact demand for rental properties and the pace of home moves.