The cost of moving is a bigger obstacle to the housing market than mortgage rates, according to new research from LRG.
Three-quarters of respondents said a reduction in the overall cost of moving would encourage them to move, or move sooner.
Greater certainty that an agreed sale would complete ranked second, cited by 34%. A simpler and less stressful process followed on 30%.
By comparison, just 28% cited lower mortgage rates.
However, the headline figures mask a sharp divide between younger and older movers.
Among under-45s, 70% said lower mortgage rates would encourage them to move. That fell to just 13% among those aged 55 and over.
The picture reversed when respondents were asked about certainty. Some 39% of over-55s cited this as important, compared with 23% of under-45s.
The older age group accounted for a much larger proportion of the survey. As a result, its priorities had a significant influence on the overall findings.
Mortgage rates hit younger buyers
Higher borrowing costs remain a major constraint for younger movers.
Zoopla’s August House Price Index put the average five-year fixed mortgage rate at around 4.8% in late August. That compared with below 4% at the start of the year.
Its figures suggest someone able to borrow £200,000 in January could now borrow around £182,000 for the same monthly repayment. That represents an £18,000 reduction in borrowing power.
The Bank of England has also held Bank Rate at 3.75%, offering little immediate relief for borrowers.
Despite affordability pressures, buyer interest has remained relatively resilient. Zoopla reported home searches running 7% above the same period last year.
Neil Louth, group executive director of LRG and CEO of The Acorn Group, said: “Our autumn sales report shows that affordability remains a major concern, particularly for younger buyers, but it also demonstrates that mortgage rates are only one part of the decision.”
He added: “Buyers are looking at the overall cost and value of moving.”
Fall-through fears weigh on movers
Transaction uncertainty emerged as another significant concern.
Some 18% of respondents said chains, delays or a sale falling through had nearly stopped them moving.
The issue was particularly important to older homeowners.
Louth said: “Many older movers have both the equity and a genuine reason to move, but they place much greater importance on certainty once a sale has been agreed.
“People do not want to commit time and money only to see the transaction fall apart.”
The findings also point to an opportunity for agents and sellers to tackle some concerns before a property reaches the market.
Of the 553 people who answered the question, 82% said they would have more confidence if key information was available before an offer. This included a survey, legal pack and details of the chain.
Louth said preparing legal information before listing could help reduce uncertainty. He also highlighted greater transparency over chains and realistic pricing.
“The clear message from our research is that getting the market moving is not solely about mortgage rates,” he said.
“Affordability matters, but so do value, confidence and certainty.”
