3.6 Million UK homeowners feel trapped in their homes

New research reveals the effects of the 'credit crunch' on homeowners plans

Date: 02/06/2008 08:00

Shocking new research^* from comparison website Gocompare.com reveals that nearly 25% of British homeowners feel trapped in their current homes because of their financial situation.

The research also indicates that the nation could be battening down the hatches for stormy times ahead with many homeowners having abandoned plans to move home or extend their property because of the effects of the 'credit crunch' and downturn in the housing market.

Worst affected by the deepening economic crisis appears to be the nation's under 25's. The survey of over 1000 homeowners carried out in May this year paints a particularly desperate picture for young homeowners. Nearly half (44%) said that their financial situation made them feel trapped in their current home and only 14% said they are likely to move to a new home in the next three years. Nearly a third (32%) of homeowners under the age of 25 said they'd actually abandoned plans to move house in the next 12 months.

However, the research also reveals that economic strife is affecting people from some parts of the country much more than others. Over a third (36%) of respondents from Nottingham feel trapped in their homes whereas just 14% of those from Belfast feel as unhappy.

On average, nearly four out of five (79%) UK homeowners said that they'd be staying put for the next three years. However, there's good news for Welsh Estate Agents with over a third (34%) of respondents from Cardiff saying they'd still be moving compared to just 6% of those from Norwich, the lowest result in the UK. In Manchester, one in five (22%) respondents said they'd abandoned plans to move because of the effects of the 'credit crunch'.

There's bad news for builders too with nearly 15% of homeowners saying they had abandoned plans to extend their homes because of the effects of the 'credit crunch'. Homeowners under 25 seem to be the most affected, with over a quarter (26%) having abandoned plans to build-on to their homes.

Research commissioned by Gocompare.com^*

Hayley Parsons, Chief Executive of Gocompare.com said; “This research shows just how hard the economic downturn is biting. A huge number of UK homeowners are worried about their financial situation and so feel trapped in their homes. It's never been more important to save money wherever you can and shopping around for your home and car insurance could save you hundreds of pounds a year in a matter of minutes.”

Gocompare.com's Home Insurance service lets you input your details once and compare more than 20 insurance brands including The AA, Budget, Endsleigh, esure, insurepink, Kwik-Fit, MoreThan, Sheila's Wheels, Swinton and Zurich home insurance.

Ends

For further information please contact:
Gordon or Liz at Maw Communications on 01603 505 845

Notes to editors:

2007 Owner occupation data sourced from CLG: Table 801: Tenure Trends – Owner Occupiers in 2007 = 14.538m

^* Research commissioned by Gocompare.com. Carried out with 1077 home owners between 06/05/2008 and 13/05/2008 by Opinion matters/Tickbox.net

Gocompare.com launched in November 2006. The first of the so-called “Comparison 2.0” websites providing a far greater focus on product comparison as well as price, while cutting edge technology makes the customer experience slick, quick and easy. Unlike some other aggregator services Gocompare.com always provides a guaranteed quote, rather than just an estimate.

Gocompare.com compares motor, home, motorbike and van insurance and also breakdown cover and comparisons are based on the range of cover (using a five star rating process) and not just cost.

Gocompare.com is authorised and regulated by the Financial Services Authority.