What York homeowners don’t know about city property market

THREE quarters of homeowners in York are looking for a new house, according to a new survey of city residents.

And almost one in three York homeowners doesn’t know what the interest rate is on their current mortgage.

According to new data released by Zoopla, 31 per cent of homeowners in the city doesn’t know what the interest rate is on their mortgage. This is despite a mortgage being the most significant financial commitment most people will make in their lifetime.

In a poll of 200 York residents about the city’s property market, one in ten homeowners doesn’t know how many years they have left on their current mortgage deal.

The poll also revealed that three quarters of homeowners in York are currently looking for a new home, meaning now is an important time for the people of York to brush up on property knowledge.

To help homeowners get a better understanding of payments, properties and percentages, here are a few tips from the property website:

● Research what your current property is valued at using online home valuation tools as these tell you whether your property has risen in value

● Evaluate your monthly debts to prioritise repayments. Home mortgage rates are usually lower than interest rates on other forms of debt, such as credit cards. It could be worth using extra funds to pay down other commitments rather than overpaying on a mortgage

● Keep a close eye on your interest rate if you have an adjustable-rate mortgage, as after the fixed period ends, rates will fluctuate. It’s important to know how rates can adjust each year as you don't want to be caught out by any changes in your monthly payments, especially large increases

The research also questioned homeowners on knowledge of their own property value, as well as average property prices in the city. The results show that while knowledge of average local property prices is high, some homeowners are in the dark about their own property’s value.

About 54 per cent of respondents correctly placed the average price of a property in York at more than £250,000. The current average property price in York is £258,400, up four per cent from January 2020.

However, the survey found a third (33%) of homeowners are unaware of the value of their own property.

Space is top of the agenda The research also highlights York homeowners’ desire for more space, as more than a quarter (28%) are looking for a larger home or a home with a specific feature like a garden or garage.

The need for space is further illustrated by data from Zoopla in early 2021 that revealed demand for extra family living spaces increased with searches for ‘gardens’ topping the list of Zoopla search terms for buyers in York in 2020.

Eco Living The survey also asked York homeowners about their green credentials and found almost all (90%) of the respondents said the efficiency of their home is important to them.

Almost two fifths (39%) said they are keen to be as environmentally friendly as possible and over half (51%) said saving money is the main motivation behind going green.

While homeowners in York are environmentally conscious, Zoopla’s research found more than two in five (43%) homeowners aren’t aware of the government’s Green Homes Grant and three quarters (76%) don’t know how much the grant is worth. Under the Government’s Green Homes Grant, homeowners are entitled to claim up to two-thirds of the bill for certain types of work undertaken to improve their property’s energy efficiency, up to a maximum spend of £5,000.

The scheme will also see the Government foot the bill for low-income households, up to a maximum spend of £10,000. Data from Zoopla shows that 200,000 homes in England alone have an EPC rating of G, the lowest score on the energy efficiency scale. This shows the need for homeowners to improve efficiency and reduce costs.

Tom Parker, consumer spokesperson at Zoopla said: “Homeowners in York could be missing crucial savings on their next big move by not understanding their current mortgage deal, interest rates or local property prices. By setting aside some time to brush up on property knowledge, homeowners can shop around and make sure they are getting the best deal.”

Ben Hudson, from York estate agent Hudson Moody, said: “Mortgages, house prices and interest rates can be confusing for homeowners, but being in the know about your own situation can really make a difference when it’s time to move or improve. Luckily for local homeowners, there’s a lot of free help and tips available, like the tools on Zoopla, to help build knowledge and answer tricky questions.”

Here are a few houses up for grabs right now:

York Press: