Brits budget £320k to buy rather than rent

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One in eight Brits looking to move in the next twelve months have an average budget of £322,000 in order to buy their next home, according to new research from AA Mortgages.

The new AA data revealed that most prospective buyers want to move to the South East, while the East Midlands is the region most people plan to leave. People in Scotland and the North West, however, are most likely to be planning a move within their region.

Despite economic slowdown and Brexit concerns, almost a quarter of the population (24%) are planning to move house in the next two years, with more people planning to buy (46%) than to rent (42%) their next home. Some 24% of those currently renting say their next move will involve them buying a home.

AA explored the ‘moving heat map’ in regional hotspots, giving an insight into where there could be the greatest and least demand for housing in the year ahead.

Property demand intensified in the South East, with movers most likely to be arriving from East Anglia and London. The South West (12%) and North West (12%) were close behind as other top locations to move to. People were least likely to move to the North East (2%).

People in the North West (74%) and Scotland (71%) would rather move within their respective regions, which makes these areas the most likely for people to put down roots.

Elsewhere, the region that most people are planning to leave behind was the East Midlands (52%), while this region was also the one with the fewest number of people to move to (6%).

What’s more, London (15%) and the North West (14%) were the most popular destinations for people who are looking to move in the next three months. For those who wish to move in the next 12-24 months, London was a less popular choice (8%). In fact, 9% want to leave the capital for a better quality of life in the country.

“For many years, commentary on the property market has been dominated by supply dynamics, where and when houses are coming on the market and how much houses are selling for,” David Searle, director of AA Financial Services, said.

“Whilst perfectly valid, we have been keen to better understand the demand factors, to see things through the eyes of those planning to move house and to understand more fully their reasons for moving, the extent to which they are fulfilling new ambitions with a move and their own sense of financial mastery over the decisions they are making.”

Across the UK, the average budget for movers was £322,829, which ranged from £410,840 for those from London to the lowest (£201,269) for people from Scotland. The budget for homeowners that were looking to move was £367,000 compared to £286,000 for renters planning to buy.

Relationship status was also a significant factor. Single parents would have difficulty securing a sizable budget for a next home (£287,939). In contrast, when people moved from co-habiting to getting married, they would spend an average of £60,000 more on their next home (from £291,247 to £351,653).

Searle added: “It is the people – not the bricks – that make a house a home, and the first findings from our new tracking study suggest as long as people are getting married, changing jobs, having babies – and wanting more for their families – then people will always be moving home.”

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Written by: Houseladder