Homeowners ‘unphased’ by cooling house prices - claim

Homeowners are largely unconcerned about cooling house prices, research suggests.

Instead, they are more concerned about having their own home than sitting on a profitable investment. 

The sentiment was revealed in a survey of more than 1,000 homeowners for eXp UK which asked how they feel about cooling house prices and the impact they have on the market value of their home.

The survey reveals that, before buying their home, 89% of current homeowners believed it was important to get their foot on the housing ladder.

When asked why getting a foot on the ladder was so important, half said it was simply about being able to own a home of their own, free from landlords and rental market restrictions. 

Another 16% said they wanted to own in order to set the foundations for building a family, and just 12% say that making an investment to generate profit when later selling was their main drive for buying. 

In reference to the current housing market, homeowners were asked whether they believe cooling house prices are a good thing and 83% said yes. 

When asked whether they are worried that current cooling market conditions could snowball into a house price crash, only 27% report having any sort of concern, while 49% say they feel indifferent about the matter. 

Despite today’s cooling prices, homeowners have faith in the long-term health of the UK market, with 86% saying they remain confident that when they come to sell their home, they will receive more money than they paid for it.

But even if their resale does achieve less money, owners remain, by and large, unconcerned, eXp UK suggests, with 86% of homeowners stating that they will have no regrets if their home eventually sells for less money than they paid for it.

Another 72% say that, even if they had known before buying that they would lose money when reselling, it would not have prevented them from making the purchase.

It is unclear if any of the survey respondents are currently trying to sell their property.

Adam Day, head of eXp UK, said: “There is an endless rhetoric about house prices and the potential of a housing market crash jeopardising the bricks and mortar investment of the nation’s homeowners. 

“But what all of that fails to consider is that, for the vast majority of people, aspirations of homeownership have little to do with the return made. It’s about having a home to call your own, putting down roots, engaging with a community, and creating stability and security for ourselves and our loved ones.

“But for those who do consider profitability a priority when buying, we only have to look at long-term house price trends to see that the UK market, through good times and bad, is resilient and highly coveted. Prices may dip from time to time, but over time, the line always goes up.”