Executive Summary
In the light of the Credit Crunch and consequent recession there has been an interest in whether the population's aspirations and demands have changed in relation to housing. This paper assesses the impact of the recession on these factors and is guided by studies of previous recessions both in the UK and elsewhere.
Aspirations
- People's plans for the short term may change rapidly in relation to their perceptions of the housing market, however long-term aspirations to home ownership remain strong.
- The housing bubble may have been partly attributable to people's fears of being unable to purchase their desired house.
New research on Housing Attitudes and Aspirations
- People are less likely to want to move house in 2010 than they were in 2007. However more people think they may have to move house even if they do not want to.
- There has been a further shift away from a desire personally to rent. However people's attitudes towards renting in general have become more positive, and general attitudes towards home ownership have become more sceptical.
- The most common reason for wanting to move house was a desire for a larger property, however more people report a desire to move to a smaller property than have done so previously.
- More want to move in order to live in a different area. The desire to move in order to live in another area is correlated with deprivation and more common amongst social housing tenants.
- Fewer people want to move in order to buy or own a property, and fewer want to move in order to start a family.
- Fewer people want to move because of work. Declines in the desire to move for work were strong for social tenants and private renters.
Buying, selling and moving house
- During the housing bubble a slightly higher number of Scottish people (across the population as a whole) moved house but this fell back to the long-term trend after the bubble collapsed.
- Fewer employed people have changed residence during and after the housing bubble.
- Home owners at risk of negative equity were more reluctant to move house.
First time buyers
- First time buyers are required to have higher deposits.
- More people are using house 'swapping' rather than selling at a loss.