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UK Homebuyers Less Flexible on Property Compromises, Research Finds

British homebuyers are less willing to adjust their expectations, finances, and lifestyles to purchase property compared to buyers in other major English-speaking markets, according to new research.

  • Only 59% of British buyers would cut lifestyle spending to afford a home, compared to 69% across all five countries surveyed.
  • Just 42% of British buyers are open to buying a smaller home, while 59% across all countries would consider it.
  • In Britain, 66% of buyers prioritise certainty over speed when purchasing a home.

New research from property data firm Cotality indicates that British homebuyers are less prepared to adjust their expectations, finances, and lifestyles to buy property compared to buyers in other major English-speaking markets. The study analysed purchasing behaviour in the UK, US, Canada, Australia, and New Zealand, highlighting differences in buyer attitudes primarily driven by affordability concerns.

Across all five countries surveyed, 69% of respondents stated they would reduce lifestyle spending to afford a home. However, only 59% of British buyers were prepared to make this compromise. Similarly, 65% of all respondents would consider a smaller mortgage, but only 53% of British buyers were willing to do so. Furthermore, 59% of respondents across all countries would consider buying a smaller property, whereas only 42% of British buyers were open to this option.

Cotality attributes this reduced flexibility among UK buyers to factors such as Britain's comparatively smaller housing stock, prolonged economic pressures affecting housing security, and the larger deposits many buyers already need to raise. Jim Driver, Managing Director at Cotality UK, noted that while buyers remain in the market, there is less room for compromise in the UK than in other countries.

The research also found that buyers across all five markets increasingly value certainty during the transaction process. In Britain, 66% of buyers would choose certainty over speed when purchasing a home, seeking clear costs, transparency in mortgage decisions, and confidence that transactions will complete successfully. These findings align with the Government's Homebuying and Selling Reform roadmap, which aims to improve transparency and provide better information earlier in the transaction process.

Why this matters: The findings suggest that government reforms aimed at improving transparency in the housing market could address growing buyer demands for certainty in a constrained market.

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