New research from LRG suggests that the overall cost of moving is a bigger barrier to the housing market than mortgage rates. Three-quarters of respondents indicated that reduced moving costs would encourage them to move, or move sooner.
Greater certainty that an agreed sale would complete was the second most cited factor, at 34%, followed by a simpler and less stressful process at 30%. In contrast, 28% cited lower mortgage rates as a key factor.
However, the findings reveal a difference between age groups. Among under-45s, 70% said lower mortgage rates would encourage them to move, a figure that dropped to 13% for those aged 55 and over. Conversely, 39% of over-55s prioritised certainty in transactions, compared to 23% of under-45s.
Higher borrowing costs remain a constraint for younger movers, with the average five-year fixed mortgage rate around 4.8% in late August, up from below 4% at the start of the year. This represents an £18,000 reduction in borrowing power for someone able to borrow £200,000 in January.
Neil Louth, group executive director of LRG, noted that affordability is a major concern, especially for younger buyers, but also highlighted that mortgage rates are only one aspect of the decision. He added that buyers consider the overall cost and value of moving.
Transaction uncertainty also emerged as a significant concern, with 18% of respondents stating that chains, delays, or a sale falling through had nearly prevented them from moving. This issue was particularly important to older homeowners.
The research also suggests an opportunity for agents and sellers to address concerns before a property is listed. Some 82% of 553 respondents indicated they would have more confidence if key information, such as a survey, legal pack, and chain details, were available before an offer.