Despite conflicting views on the rise or fall of UK house prices, Alliance & Leicester’s latest findings reveal that one of the main reasons for moving over the next two years is to cash in on bricks and mortar. This suggests that people still have confidence in the housing market despite reports to the contrary.
Those in the North (16%), more than in any other region, want to make money from property compared to only 3% of Scots.
The research also reveals that those in their 20s continue to grow in confidence and optimism. One in four (25%) of twenty-something Brits are hoping to buy a property within the next two years compared with last quarter where a fifth (20%) revealed they would want to buy. This is the highest for any age group.
Those in their 30s are also optimistic with one in four (20%) saying they are planning to buy a home in the next two years. This is an increase from last quarter when 17% were planning a move.
Overall demand remains stable, with 12% of people saying they plan to move in the next two years, 2% more than last quarter. Of those planning to move - just under half (5%) are planning to do so in the next 12 months with the remainder (7%) wanting to move within two years.
Stephen Leonard, Director of Mortgages and Savings & Investment Products at Alliance & Leicester comments: “Potential homebuyers seem to feel that housing market vitality will remain strong despite differing reports of house price movements since the start of the year. Many commentators feel the housing market will cool this year, however it is encouraging to see that consumer confidence remains steady and that it doesn’t seem to deter those who hope to see their property rise in value over the coming years.
“People in their 20s continue to grow in optimism about getting on the housing ladder. With so many competitively priced mortgages, first time buyers have never had it so good. However, it’s important that anyone wanting to buy a home, whatever their situation, seeks reputable advice, and looks for a mortgage that allows them to join the property market whilst borrowing within their means.”
Key findings:
- Overall intentions remain steady with those planning to move in the next two years remaining the same at 12% compared with this time last year.
- Over one in five Londoners (21%) are planning a move within the next two years with people in the East Midlands and South East the next most likely to move at 14% and 12% respectively.
- As in previous quarters, men are more likely to be buying a home in the near future than women – 13% of men compared with 11% of women.
- Older housebuyers are also intending to move in the next two years with 8% in their 50s and 4% in the 60s planning to move within the next two years – this is an increase since last quarter of 6% and 2% respectively. This could represent those choosing to ‘downsize’ once families have left home or, perhaps wanting to purchase a retirement property abroad.
Reasons for moving:
- Northerners (16%), more than any other region, hope to make money from property compared to only 3% of Scots.
- Wanting more bedrooms is the main reason given for buying a home by men, married people and those who live in the North. Over a fifth (22%) of men, nearly one in four (23%) of married people and 32% of those in the North want to move for this reason.
- Whilst independence is the main reason to move for women, single people and those from the East Midlands. Nearly one in five women (18%), over a third of single people (35%) and near a quarter of those from the East Midlands (24%) want to move for this reason.
