Lower mortgage rates ranked fourth on list of what would encourage home movers

Asked what would most encourage them to move, or to move sooner, 28% of respondents in LRG’s autumn research named lower mortgage rates, putting cheaper borrowing fourth, behind a reduction in the overall cost of moving (75%), more certainty that a sale will complete once agreed (34%) and a simpler, less stressful process (30%).

Among under-45s, 70% named lower mortgage rates, against 13% of those aged 55 and over. On certainty, the order flips, with 39% of 55-and-overs naming it against 23% of under-45s. The older group is by far the larger in this survey, so its answer sets the overall result.

Borrowing costs are the reason younger movers give. Zoopla’s August House Price Index put the average five-year fixed rate at around 4.8% in late August, up from below 4% at the start of the year. On its figures, someone who could have borrowed £200,000 in January can now borrow around £182,000 for the same monthly payment, roughly £18,000 less.

Buyer interest hasn’t dropped away, though. The same index shows home searches running 7% above this time last year, the strongest annual increase in 12 months.

What the older group asks for instead is certainty, and 18% of all respondents named chains, delays or a sale falling through as what nearly stopped them moving.

82% of the 553 who answered said having a survey, legal pack and chain details available before an offer would give them more confidence, and most of that is within a seller’s control. 

Neil Louth, group executive director of LRG and CEO of The Acorn Group, commented: “Our autumn sales report shows that affordability remains a major concern, particularly for younger buyers, but it also demonstrates that mortgage rates are only one part of the decision.

“Buyers are looking at the overall cost and value of moving. Asking prices have adjusted, buyers have more choice and negotiating power and, in some areas, properties now represent better value than they have for many years. Although buyers may be paying more in mortgage interest, they can also be paying less for the property itself, which is why serious buyers remain active.

“The report also shows how priorities change with age. Many older movers have both the equity and a genuine reason to move, but they place much greater importance on certainty once a sale has been agreed. People do not want to commit time and money only to see the transaction fall apart. Improving that certainty could encourage more people to move without having to wait for another interest-rate decision.

“That finding is particularly significant because it shows how much confidence can be created before a property even comes to market. Preparing the legal information before listing, being transparent about the chain and pricing accurately from the outset can all reduce uncertainty and unnecessary delays. These are practical steps sellers and agents can take now rather than waiting for wider reform.

“The clear message from our research is that getting the market moving is not solely about mortgage rates. Affordability matters, but so do value, confidence and certainty. Price the property correctly, prepare the paperwork early and give buyers confidence in the chain, and there is still a strong appetite to move.”