New research from Santander shows more than half (57%) of homeowners who considered moving in the last year have paused their plans – with high costs the biggest barrier to moving.
Instead, nearly a third (31%) said they would renovate their current home, with average budgets tripling in the last five years as a result. Setting money aside for a home office, however, is no longer a priority, with planning applications halving since their 2021 pandemic-related peak.
The cost of moving was a key factor when homeowners were asked why they decided to stay put. High moving expenses, including solicitor’s fees, were cited by 30% of people as a reason not to move, with 27% saying renovating was more cost effective. The increase in stamp duty was an issue for 16% of those questioned, with 20% saying they would be more likely to buy if the tax was reduced from 5% to 3%.
Cost aside, more than half (54%) of homeowners said renovating was less stressful than moving, with one in five (22%) saying there weren’t enough properties on the market that suited what they were looking for.
David Morris, head of homes at Santander UK commented:
“Despite a significantly healthier property market than in recent years, the rising costs of moving and recent increases to stamp duty are leading many homeowners to consider their options before packing up. Whether it’s adding a bit more space or reshaping what’s already there to make it perfect, we’re here to help people invest in the places they already call home and create their perfect property.”
Data from 2024 showed that 90% of all further borrowing applications to Santander, where mortgage holders take out additional loans, were for home improvements, while half of all remortgages were also to fund home improvement plans.
