Reports
18 September 2013

Homes and mortgages 2013: Hopes and economics realities

Living in a “dream home” is important for most people in Europe. So do they think the price will rise and are they willing to move away to get it?

Executive summary

The second annual ING International Survey on Homes and Mortgages continues to build a picture of housing trends in 12 countries in Europe. The major survey of almost 12,000 people uncovered the following insights about house prices, aspiration and practical realities of choosing where to live.

1. Opinion is split on whether house prices will rise in the next 12 months – with the majority in six countries surveyed expecting house prices to fall and the majority in the other six countries surveyed expecting house prices to rise. Turkey is the most optimistic of the 12 countries polled, closely followed by Austria. A turnaround in the United Kingdom is evident, with a 56% increase in the number of people in the United Kingdom who think prices will rise in the next year compared with our 2012 survey. At the other end of the spectrum is Spain, where only 17% think house prices will rise in the next 12 months.

2. Many mortgagors appear to be missing an opportunity presented by the historically low interest rates in many countries. Of respondents who find it easy to pay their mortgage, 84% are not paying it back more quickly because interest rates are low. While there might be good reasons for some, others might be stuck in a behaviour trap of inertia and are simply doing what they have done in the past. It is perhaps not surprising that of those who find it difficult to pay their mortgage, only 1% are paying it back more quickly because interest rates are low.

3. The “dream home” of people in Europe is a detached house – but while they agree living in a home of their dreams is important, people in Europe are not willing to pay any cost to get it. Just a quarter agree that homebuyers should take on the biggest mortgage they can to get the biggest and best home. And the majority see the oft emotionally-charged step of owning a home as “a purely financial decision”. Overall, only 27% in Europe live in the type of housing they would ideally like to enjoy.

4. Moving to another country to improve job prospects is being considered by about threein- ten of those surveyed. Moving within the European Union is relatively easy – and some argue there is a strong link between housing and migration. The unemployment rate appears to have an impact on willingness to relocate. Owning a home is also a barrier to emigration but family and friends and affection for where respondents currently live are more often cited.

The second annual ING International Survey on Homes and Mortgages continues to build a picture of housing trends in 12 countries in Europe. The major survey of almost 12,000 people uncovered the following insights about house prices, aspiration and practical realities of choosing where to live.


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