HOME IMPROVEMENT COMES ABOVE RELOCATION AS UK WORKERS ADMIT PREFERRING LOCAL AREA SINCE LOCKDOWN
The majority (82%)¹ of homeowners aren’t considering upsizing post lockdown
68% of homeowners would like to make improvements to their current home²
Amongst homeowners, almost 1 in 7 are now considering re-mortgaging their property for home improvement³
Trussle’s new remortgage calculator shows homeowners how much they could save to improve their current situation whilst saving up for their next move
Lockdown has changed the way people feel about their homes with not everyone wanting to move away from their current neighbourhoods and escape to the country. Although space is very much front of mind, so is the value of communities with 1 in 4 homeworkers admitting they now prefer their local area since working from home⁴, despite many amenities being closed or limited during the lockdown.
In the current climate, and with 1.8 million households on a mortgage holiday⁵, the widely reported movement towards larger, more spacious homes is simply impossible for many homeowners. Furthermore, for anyone who is trying to make a move, increasingly stringent checks are being placed on mortgage applications. Lenders are more reluctant to use variable income such as bonuses and overtime)⁶ and estate agents are beginning to demand financial arrangements be guaranteed before accepting offers. With so many obstacles and challenges, unsurprisingly, the British public are keen to ‘love it’ rather than ‘list it’ at the current time.
Staying put doesn't necessarily mean not improving though. Unsurprisingly, those living in London and the younger 18-34 year-old age group proved to be the most notable audience wanting to upgrade their home, with 37% and 29%⁷ respectively interested in remortgaging their home for improvement purposes. The top six home improvements⁸ were:
A kitchen refit (26%)
A bathroom refit (23%)
Having their garden landscaped (22%)
Building an extension (16%)
Having a large garden (9%)
Creating a home office (8%)
Not only that, but research shows that 30% of parents revealed they have found home-schooling difficult during the pandemic⁹ and many may welcome the money saved through remortgage to employ a tutor for their children while the schools remain closed.
To assist those feeling the pinch, online mortgage broker Trussle has created a remortgage calculator that equates things like tutoring, zipcar hours and saving towards UK based holidays to an individual’s possible remortgage savings.
Miles Robinson, Head of Mortgages at Trussle comments: “As the UK begins to emerge from the Coronavirus lockdown into a new normality, the mortgage market is reopening¹⁰. Meanwhile, our research shows that a number of homeowners are reconsidering what they think is important in a home and considering how they can improve their current living situation to suit their needs.
In response to the clear shift in homeowners’ priorities, Trussle saw a 110% leap in enquiries for remortgages from April 2019 to April 2020 as home owners look to save more money during these uncertain times¹¹. Our newly launched remortgage calculator will tell you, quickly and easily, how much you could save. And it doesn’t stop there: the calculator will also show you how the money you save could impact the quality of your current home life by calculating the products and services you could purchase if you remortgaged.
Depending on your life’s priorities, use Trussle’s remortgage calculator to see how much you could gain.”
~Ends~
Contact
For further information, please contact:
Emily Coyle at [email protected] or Leilah Mackie at [email protected]
We’ve taken extra care to ensure the information provided within this release is presented in a way that’s compliant with regulatory requirements. If you have any questions about how to repurpose this information or require any further assistance, please contact Leilah Mackie at Trussle.
Methodology
Trussle conducted research online with 2,002 UK adults aged 18+ weighted to be nationally representative between 29 May – 1 June 2020, using insight agency, Opinium.
1. Source: Trussle research 29 May – 1 June 2020
Calculation: 2002 respondents were asked ‘ Has the Covid-19 pandemic and lockdown made you think about moving to a larger property with more space?’
298 selected ‘yes’
1643 selected ‘no’
61 selected ‘don’t know
1643 of 2002 = 82%
2. Source: Trussle 29 May - 1 June 2020
Calculation: 1,278 identified themselves as homeowners (outright or with mortgage) were asked ‘Which of the following home improvements would you like to make if it were possible?
Calculation = 366 selected n/a ‘I don’t want any home improvements’ = 28.6%
Calculation = 36 selected ‘Don’t know’ = 2.8%
Calculation = 28.6% + 2.8% = 31.4% (respondents said they either did not want any home improvements or that they didn’t know whether they wanted home improvements). Therefore, 68.6% (rounded to 69%) did want to make home improvements if they were possible.
876 selected at least one of the following options:
Re-fitting your kitchen (333) = 26%
Re-doing your bathroom (291) = 23%
Landscaping your garden (277) = 22%
Building an extension (209) = 16%
Having a large garden (119) = 9%
Creating a home office (99) = 8%
Building a swimming pool (95) = 7%
Building a garage (77) = 6%
Converting a room into a home gym (63) = 5%
Converting a room into a playroom for the children (49) = 4%
Other (56) = 4%
3. Source: Trussle research 29 May – 1 June 2020
Calculation:1,278 identified themselves as homeowners (outright or with mortgage) were asked ‘As buying/ selling property is difficult during COVID-19, would you consider remortgaging your property to improve your current home?
Calculation: 176 selected ‘Yes’ = 14%
4. Source: Trussle research 29 May – 1 June 2020
Calculation: 1252 respondents identified themselves as workers
They were asked ‘How has working from home affected your thoughts about the surrounding area where you live?
143 selected ‘I like the area much more’ = 11%
156 selected ‘I like the area slightly more’ =12%
11% + 12% = 22%
5. Source: https://www.bbc.co.uk/news/business-52767058
6. Source: https://www.mortgagesolutions.co.uk/news/2020/05/18/affluent-homeowners-on-furlough-face-remortgage-struggle/ 7. Source: Trussle research 29 May – 1 June 2020
Calculation: 1910 respondents identified themselves as homeowners (outright or with a mortgage)
They were asked ‘As buying/ selling property is difficult during COVID-19, would you consider re-mortgaging your property to improve your current home?
Calculation: 268 18-34 year-olds 79 selected ‘yes’ = 29%
Calculation: 152 London based respondents 57 selected ‘yes’ = 37%
8. Source: Trussle 29 May - 1 June 2020
Calculation: 1,278 identified themselves as homeowners (outright or with mortgage) were asked ‘Which of the following home improvements would you like to make if it were possible?
366 selected n/a I don’t want any home improvements
36 selected Don’t know
876 selected at least one of the following options:
Re-fitting your kitchen (333) = 26%
Re-doing your bathroom (291) = 23%
Landscaping your garden (277) = 22%
Building an extension (209) = 16%
Having a large garden (119) = 9%
Creating a home office (99) = 8%
Building a swimming pool (95) = 7%
Building a garage (77) = 6%
Converting a room into a home gym (63) = 5%
Converting a room into a playroom for the children (49) = 4%
Other (56) = 4%
9. Source: Trussle research 29 May – 1 June 2020
Calculation: 512 respondents identified themselves as parents of children aged 4 - 17
They were asked ‘As a parent of a school aged child, how easy or difficult have you found the following situations?’
For the situation ‘home schooling in general:’
90 selected ‘quite difficult.’ 90 of 512 = 18%
59 selected ‘very difficult.’ 59 of 512 = 12%
18% + 12% = 30%
“Mortgage Brain has seen ESIS volumes produced by its sourcing systems rise by 11.5% over the last week, "continuing its recent resurgence.
This is the fifth straight week in which volumes have risen, with numbers growing by 27.7% since the housing market formally reopened three weeks ago.”
11. Source, trussle.com. 110.84% increase in remortgage submissions YoY April 2019 - April 2020. Data sourced 13/05/2020
About Trussle
Trussle helps people love their journey of owning a home. We’re the online mortgage broker helping you wherever you are on the ladder.
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In September 2016 Trussle launched an industry-first partnership with online property portal Zoopla, making it possible to find and buy a home in one seamless experience. Trussle is backed by some of Europe's leading technology investors including Orange Growth Capital, LocalGlobe, Ed Wray (founder of Betfair), Ian Hogarth (founder of Songkick), Seedcamp, and Zoopla Property Group.
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