Revealed - Britain's Happy Homeowners

Whatever's happened to the great British reserve? We are a nation of happy homeowners - and, what's more, we're prepared to admit it.

A major new index, The John Charcol Homeowners' Happiness Index, launched today reveals that eight out of ten British homeowners - some 21 million people - are very happy in their home, giving a score of eight or more out of ten. And more than a third - an astonishing nine million people - are prepared to give the maximum ten out of ten score for happiness in the home. See attached for key findings ...

"The British are renowned for their 'mustn't grumble' approach to life, but the traditional stiff upper lip usually masks a myriad of complaints about life and the home," says John Charcol Managing Director Ian Darby."Our index cuts through the stereotype and reaches the overwhelming conclusion that as a nation we are not just happy - but extremely happy - in our homes".

John Charcol, the UK's leading independent mortgage adviser, commissioned MORI to compile the index, which aims to track homeowners's happiness in their home and examine core issues like affordability and moving home. It also provides a fascinating, and more lighthearted, insight into other factors which could contribute to people's happiness, from space to colour - and even star signs.

"The nation's wellbeing depends on a number of economic factors - and home life is central," says Darby. "We felt it was important to take a look beyond our core business of mortgage advice and remember that mortgages are simply a means to an end. From our day-to-day business we gain a fascinating insight into social and economic factors driving homeowners' contentment in their homes and their desire to move home. The new index takes this a step further and is designed to examine these trends and issues in a more robust and authoritative way".

The research is welcomed by Britain's leading expert in the economics of happiness - Professor Andrew Oswald, professor of economics at Warwick University. "This is a useful contribution to an expanding field of research about wellbeing. Such work lies as the important border between economics and psychology".

"One day this sort of evidence will revolutionise government policy in western democracies. I expect concern for Gross Domestic Product to have diminished and happiness surveys and job-satisfaction surveys to have become a central part of British life. The News at Seven in the years 2020 could well feature the country's monthly wellbeing score, GHL - Gross Happiness Levels! Surveys of happiness and wellbeing are here to stay".

The John Charcol Homeowners' Happiness Index - Key Findings

A nation of happy homeowners. Eight out of ten British homeowners - 21 million people - are very happy in their home, giving a score of eight or more out of ten. And more than a third (35%) - an astonishing nine million people - are prepared to give the maximum ten out of ten score for happiness in the home.

The gender difference. Significantly more women than men admit to being extremely happy in their home - 41%, against 28% of men.

"This finding supports a pattern that is common in other sphere's of life - women typically report markedly higher levels of satisfaction than men" Professor Andrew Oswald.

And the survey debunks the Victor Meldrew myth. The research reveals that homeowners become happier in their home as they grow older, "an indication that many people do achieve their goal of an ideal home - eventually" says Ian Darby. 44% of homeowners over 55 gave the maximum happiness score, compared to just 26% of 18-34 year olds and 25% of 35-44 year olds.

"In other spheres wellbeing also seems to rise with age - something encouraging for all of us on the wrong side of 40" Professor Andrew Oswald.

North, West - East is best. The index reveals a significant regional divide when it comes to happiness in the home. East Anglia stands out as the 'happiest' region in Britain where 50% of homeowners gave the maximum score. The North of England was also smiling at 43%. The South East needs some pepping up with just 26% of homeowners rating their happiness in their home at ten out of ten. London also scores below the national average for happiness in the home at 30%.

Money does buy happiness it seems. More people in expensive homes are happy than those in lower-value homes. 45% of people with homes worth more than 163250,000 scored ten out of ten on the happiness scale. Only 33% of people with homes worth less than 16375,000 gave the maximum score.

"Quality of housing has a major influence on human happiness" Professor Andrew Oswald.

House prices may have rocketed to unprecedented levels, but the index reveals that a surprising 63% of homeowners find their home easy to afford.

And affordability seems to affect happiness. Homeowners who were happiest in their home generally found it easier to afford, with only 10% admitting to difficulty. Whereas 27% of unhappy homeowners said they found it difficult making ends meet.

"The affordability statistics may come as a surprise to many" says Ian Darby. He attributes high affordability, in part, to the current cost of mortgages which make up a large part of home-related expenses. "Mortgage payments as a percentage of take home pay are low by historical levels. And if interest rates move downwards, the affordability factor could well rise even further" he predicts.

And the findings fuel the town v country debate. 42% of homeowners living in the countryside are extremely happy compared to just 30% living in cities and towns.

Moving on up. But happiness in the home doesn't mean that people are going to stay put. Three million people, 12% of British homeowners, have itchy feet and will be putting their home on the market in the next two years looking for a new property where they hope they will be just as happy. London is the most restless region with almost double the national average planning to move in the next two years (22% against the national average of 12%). The North is the most settled region with just 4% planning to move in the next two years.

In your dreams. And what would our dream home be? A humble cottage in the remote British countryside! The survey concludes that we are reassuringly British after all. Even if we won millions on the lottery this would still be our preferred choice - at 38% - beating more exotic choices such as a beach home in Bali (18%), or grand chateau in France at 7%.

Technical details

The results of the Happiness survey were based on interviews with 1,002 adult homeowners* aged 18 or over. It was conducted on behalf of John Charcol by MORI Financial Services, between 5-13 April 2000. The respondents were a representative cross-section of the British population by sex, age, social class and standard region. They were asked to grade their happiness on a scale of one to ten, with one being extremely miserable and ten being extremely happy.