The study showed 88 per cent of people purchased a property to be a home owner rather than for the capital gains it afforded, with 77 per cent buying the property to live in. Of the 1,000 people questioned, only 45 per cent felt making money from a property was important.
The study also showed that even a fall in house prices of 15 per cent would not spark panic selling, with 2 per cent stating they would sell immediately. 63 per cent would retain ownership of the property. An indication of the sheer demand for property was displayed in that 17 per cent would actually look to buy in this situation.
Confidence in house price buoyancy was revealed, with two-thirds of consumers believing prices would increase in the next 12 months. However, 71 per cent accepted that prices could fall next year.
Adrian Coles, director-general of the BSA, said: “The findings suggest that households’ confidence in the housing market is robust and points to the stability of the market if house prices were to fall. There would need to be some shock to the wider economy, for consumers’ confidence in their ability to hold on to their property to be shaken.”
Roy New, a London-based sole broker, commented: “The majority of property is bought for habitation. People say buy-to-let is the new first-time buyer, but it’s still only a small percentage of all mortgages sold.”
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