Twenty-somethings represent the largest group in the UK who are intending to buy property, but despite this, the number of people planning to move in the next two years has dropped and homebuyer confidence is at its lowest point in the history of the index.
Only 11 per cent of those questioned are planning on buying a home in the next two years, down from 15 per cent a year ago. Intentions to move in the next 12 months have remained static at five per cent for the last three quarters. Warnings from commentators that property prices cannot continue to rise and may even fall in the near future are likely to be affecting people’s home buying decisions.
Buying being cheaper than renting is now the main reason to buy a home, with 23 per cent of people saying this is the most important factor in their decision to buy, up from only one per cent in April 2001. This rises to 37 per cent for people in their 20s who are planning to buy.
Needing more independence is the second most important reason to buy, reflecting the age of those looking to purchase property: buyers in their 30s look for more space and bigger gardens when choosing to move.
The latest findings, from A&L’s quarterly movingimproving index, asked a GB representative sample of 4,000 people whether they intended to buy a new home, if so, when and what they are looking for in their new home.
Paul Cooper, Head of Mortgages at Alliance & Leicester, said: “Reports on the property market tend to swing between two extremes – doom and gloom on one hand and massive hype on the other. The truth, of course, is somewhere in the middle – intention to buy has remained static for three quarters, but the desire of younger people to get on the property ladder shows that buyers have long-term faith in the UK housing market.”
