Posted on 28 Jun 2018

Londoners more dependent on mortgages House-buyers outside London and South more likely to have other funding


Larkfleet Homes wants the views of house buyers.

 

Around 80 per cent of buyers in London, the South East and the South West of England say that a mortgage was ‘the primary source of finance’ for their new home. This compares with an average of 72 per cent across the country as a whole.

Buyers in areas such as the Midlands and the North of England are more likely than average to have purchased their home primarily with savings, an inheritance or some other source of finance. Right across the UK, however, a mortgage is by far the most likely route to purchase.

And across the UK, almost 30 per cent of buyers taking out a mortgage say they had some assistance with putting up the deposit. That assistance was most likely to come from parents (58 per cent of those receiving help) with the next most frequent source being grandparents (10 per cent).

These are among the interim results from Larkfleet’s ongoing survey into the views of house-buyers. The company is continuing to offer prizes of up to £1,000 to anyone doing the online questionnaire here. It takes less than ten minutes to complete.

Mike Holland of OlsenMetrix Marketing, which is managing the study on behalf of Larkfleet Homes, said: “It may be that house prices in London are so high that savings, gifts or inheritances are not enough to be the major source of finance, although obviously making a welcome contribution to the purchase. This means that the bulk of the money must still come from a mortgage.

“As we continue to gather more data we shall get a clearer picture of what is going on and what, if anything, housebuilders can do to assist.”

The full results of the survey are expected to be published in September when more data has been obtained.

Larkfleet Homes CEO Karl Hick said: “We remain very keen to hear from anyone currently searching for a new house or who has purchased a new house in the past twelve months. 

“Whether your search and purchase involved a brand-new home or an established property, and whether you looked at a Larkfleet home or not, your views will help to shape the way we meet the needs of home buyers in the future.”


 | Tags: London, House Buying


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