In the report, we focus on the mass affluent market – that’s professionals with annual incomes of $60,000 to $500,000 (approximately, £46,000 to £385,000). They constitute a third of all income earners. And they’re particularly attractive to lenders due to their future income and asset accumulation potential. In turbulent economic times, they may also represent less of a risk than other potential home buyers.
It’s likely that for many of these professionals, the lockdown provided a pause for thought about what they wanted from a home. Suddenly, access to green spaces and larger homes became far more attractive than being at the heart of the city or town. And for some, at least, the UK stamp duty holiday on properties up to £500,000 is a financial incentive to move despite economic uncertainty.
So, while the current environment is dissuading some from making a purchase, others are moving ahead undeterred – and some are looking to move ahead even faster to take advantage of preferential interest rates. Among our mass affluent market in the UK, 46 percent expected a delay to their purchase timeline. But 45 percent expected no impact, while 8 percent were looking to accelerate their purchase.
Understanding the needs and expectations of this customer segment will be important to the success of mortgage lenders. Here are three trends you should have in mind.