Rightmove Property Census 2007/8
Biggest ever Property Census confirms buyers remain
confident
In spite of the housing market uncertainty caused by the credit crunch, nearly
three quarters of UK landlords remain optimistic that buy-to-let is a safe
investment, reports Rightmove, the UK’s number one property website.
Rightmove has carried out the largest consumer property study to date; targeting thousands of buyers, investors, tenants, landlords and sellers. In a unique
position to research home-moving trends and attitudes, with over 25 million
visits per month, Rightmove asked homemovers probing uestions relating to
their current situation. The Rightmove Property Census attracted over 32,000
responses in the three months it was live on the Rightmove website.
The findings, published today, reflect the general public’s long-term optimism and
confidence in property. For example, Rightmove has discovered only 6% of
existing landlords are looking to sell some of their properties and what’s more,
58% intend to buy more properties! The responses from Buy-to-Let investors are
particularly revealing, with the Census taking place against the backdrop of the
credit crunch, the Northern Rock Bank failure and property prices flatlining.
Half of all Buy-to-Let investors view their property portfolio as part of a long-term
plan, whilst around three quarters of existing landlords have invested in
property as part of a “safe” strategy and as assets to fund their retirement plans.
Another confident group were the first-time buyers. Overall, nearly 6,500 took
part, with 36% of them still living with their parents. A quarter of the first-time
buyers surveyed had saved their own deposit despite rising prices and even in a climate of rising living costs, only 13% of first-time buyers are relying upon their
parents to help them with a deposit to step onto the housing ladder.
Similar to investors, first-time buyers understand the long-term nature of
property investment and only a third of first-timers predict property prices will
continue to rise during 2008. However, affordability still remains a major concern
for some and unsurprisingly, the average age of first-time buyers is rising.
Rightmove’s research reveals that 22% of first time buyers are aged over 35!
Over half (51%) of those planning to buy for the first time are between 25 and
34; with 27% aged 18 – 24, and. 4% of first-time buyers aged between 45 and
54. Astonishingly, 1% of first-time buyer respondents were aged over 55 (1%).
“Despite cooling prices, the Rightmove Property Census has found that the UK’s
passion for property is cemented, with investors and buyers taking a healthy
long-term view,” comments Miles Shipside, Commercial Director at Rightmove. “They see bricks and mortar as a valuable and reliable asset and there is an
underlying healthy demand for property which highlights there is still a positive
sentiment amongst the public in spite of the credit crunch.”
With Rightmove recently celebrating its busiest day ever on 14th January,
attracting over one million visits in one day, the New Year has seen buyers
searching in full force. Responses to all the surveys confirm that the Internet has
well and truly become THE place to find and market property - 95% of
homemovers believe it is essential to market their property online. A massive
83% of all buyers responding to the Census find the Internet more useful than
the traditional property newspapers for finding their new home.
“Over the last few years, the use of the Internet has become more accessible and
widespread; not only within the home, but on mobile phones and various other
channels,” adds Miles. “Researching the local property market has become a
national obsession and form of entertainment. As well as potential buyers seeing
what they can buy with their budget, homeowners like to see what similar
properties to theirs are selling for. The Internet has revolutionised the
homebuying process dramatically as everyone now knows that they can easily
view thousands of property details from a range of agents, with maps and
additional images in seconds.”
Key findings:
First-time buyers…
•Are patient! 36% are currently living with their parents, highlighting
issues of affordability, but also indicating that the desire for owning a home
outweighs their longing to be independent. 31% are in rented
accommodation with their partner. 10% currently live alone in rented
accommodation, 5% are renting with friends and 3% in a rented
houseshare with others they didn’t know before moving in.
•Aren’t all relying on the Bank of Mum & Dad. 26% saved the deposit
and got the mortgage on their own. Only 13% of first-time buyers are
relying on parents for their deposit. 10% have borrowed 100% or more,
4% are buying through a shared-ownership scheme, 2% are using their
parents as mortgage guarantors.
•Are watching house prices closely. A passionate 43% of first-time
buyers will still buy if prices soar but 46% admit it may hinder their
chances of a purchase. Overall, 40% expect house prices will not continue
to rise in 2008, 37% expect price rises and 23% are unsure.
Movers…
• Want more space! A massive 41% of homemovers hope to relocate into
a larger home. 23% of movers plan are planning to move to a different
area altogether, with 12% of all movers planning to downsize. 6% have to
relocate for work.
• Some are moving on! The exodus to migrate continues with 13% of
sellers intending to move overseas. Just 7% of sellers are selling to reduce
high mortgage repayments.
Landlords :
• Are savvy: 94% have researched the market and are planning to buy a
property that falls under the £250k stamp duty threshold to avoid paying
a heavy tax burden and incurring unnecessary costs.
• Plan to invest more: 58% plan to buy more properties to rent out and
11% are keeping the properties they have. Only 4% are planning on
selling all their properties, with a mere 2% planning to shrink their
portfolio in the next five years. 25% are undecided and will be keeping an
eye on the market.
The rise of the Internet:
• There is a rising trend in the use of the internet for a range of home
moving solutions - over 40% of all participants asked said that they
regularly surf the web for everything from mortgages to utilities and
furniture!
• 94% of buyers would recommend Rightmove to others.
•6% of landlords and investors feel it is essential their properties are
marketed online.
• According to 83% of sellers, Rightmove is an essential part of property
selling and the results also show that sellers see Rightmove as the most
effective way to market your property. The estate agent’s website came
in second, an estate agent’s window coming third, before local
newspapers, For Sale signs and other property portals.
• 64% of buyers use the Internet on an ongoing basis to search for
property. Over a third (34%) of buyers and sellers turn to the Internet to
search for property before doing anything else.
• Only a tiny 2% of buyers claim local papers more useful than the Internet
for finding property!
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