Industry in depth

Recession reinforces value of home

5 November, 2009

The research by Aviva shows that 68% of homeowners see their home as an emotional investment, where they seek relaxation and calm, rather than a commodity to make money for the future.

And in the event of losing their existing home almost three quarters of people (71%) said they would want to buy it back and 16% said they would be prepared to pay more than the market value for it.

The Hoppers V Stoppers study by Aviva and Dr Paul Keedwell, expert in environmental psychology at Cardiff University, has calculated that, in monetary terms, the average homeowner has an emotional equity of £26,880 in their property - the Emotional Added Value (EAV) has been determined by the memories, milestones and personal contributions people have made in their homes.

The study reveals a surprising re-assessment of how the nation views its homes in recession-hit Britain 2009:

• The ‘Hopper' culture has virtually collapsed - 80% of people considered themselves to be home hoppers before the recession while only 26% say the same today
• The majority of respondents believe that their humble abode is first and foremost a place to relax (85%)
• Over 80% see their home as a sanctuary where they feel safe and secure
• Almost three quarters of Brits would prefer to spend their recreational time in the comfort of their domestic surroundings (72%)

Dr Keedwell commented: "A surprisingly large number of people across the UK (68%) report having a new-found emotional attachment to their homes. This is probably because of, rather than in spite of, the economic downturn, which has made many of us change from being house hoppers to house stoppers.”