Brits can’t move and won’t move

Impending fears of an economic downturn are beginning to hit home as consumer confidence in credit and borrowing falls for the second quarter running, with nine in ten (91 per cent) homeowners not intending to move and nearly half (48 per cent) of all non-homeowners saying they never intend to buy.

Figures from the latest Personal Credit Index research published today from CreditExpert.co.uk, the online credit report monitoring service from Experian, show:

Home-owning Brits are more likely to make home improvements than move

Nearly half (48 per cent) of those who don’t currently own their own home never intend to get on the ladder – with age and location acting as key factors

Consumer confidence is at a marked low, with nearly one in ten Brits (8 per cent) concerned about their ability to pay bills and meet repayments

Rise of the Resigned Renters and the Non-Mover Improvers

As consumer confidence dips, with CreditExpert’s Personal Credit Index showing a two-point decline in the last quarter to 96, the research identifies two key groups:

Home owners investing in home improvement rather than purchasing a new home

Those who are resigned to renting and can’t ever see themselves buying a home

Nine in every ten (91 per cent) homeowners are planning to stay in the house they currently own for at least the next six months, with many Non-Mover Improvers planning to add value whilst staying put. In fact, homeowners planning to make improvements are looking at spending an average of £11,142 on home improvements in the next six months.

Nearly one-third (31 per cent) of young homeowners (aged 25-34) who are staying put are planning major improvements, including adding conservatories, loft conversions or extensions, fitting a new kitchen or bathroom.

Nearly half (48 per cent) of those who don’t currently own their own home never intend to buy. Of these Resigned Renters – non-homeowners not intending to purchase – 46 per cent gave the reason that they don’t think they will ever be able to afford to buy, rising to 60 per cent of 35-44 year-olds and 56 per cent of 25-34 year olds. Location is also key, with 55 per cent of people in the South of England believing they will not be able to buy a property, compared to 39 per cent in the North.

Darryl Bowman, Director of CreditExpert.co.uk, said, “With consumer confidence in borrowing dropping two points in the last quarter amidst concerns of an economic downturn, it’s understandable that people are feeling that home-ownership is out of their grasp or that they should be ploughing money into home improvements rather than moving. Whatever your financial aspirations, making sure your credit report is in the best possible shape is crucial to allow you to be judged fairly by lenders and to be able to extend the amount you can responsibly borrow – particularly in the current credit cautious climate.”

Up in the South

The Index, which is based on survey data from Ipsos MORI gathered in January 2008, tracks consumers’ current credit confidence and future expectations on a quarterly basis. It also revealed that, despite the declining levels of consumer confidence, 40 per cent of home-owning Brits think that their house has risen in value in the last six months.

This figure rises to almost half (49 per cent) in the South of England. Even in the North – despite consumer confidence three points below the national average – 44 per cent of homeowners in the region believe that their property has risen in value.

Darryl Bowman continued: “Whether you are planning to buy a home or improve your current one, you should start by reviewing your finances. An online credit report monitoring service such as CreditExpert.co.uk can help by providing a summary of your credit status and alerting you to any changes in your credit report. You can get a 30-day free trial at www.creditexpert.co.uk.”