Cautious consumers stay in homes

Cautious would-be buyers are staying put this year

The number of people looking to buy a new home in the next 12 months has fallen to its lowest level for four years, research showed.

Only 4% of people think they will move house in the coming year - the lowest percentage since Alliance & Leicester began tracking intentions in 2000.

The figure was down from summer, when 6% of people said they would move.

However, the number of people planning a move in the next two years remained unchanged from the autumn at 12%.

'Buoyant'

The results of the survey of 4,000 people showed consumers were optimistic yet cautious in the short-term, the group said.

"Although there continue to be warnings of interest rate rises, the latest findings suggest that buyers feel that any increases will still be affordable," Paul Cooper, head of mortgages at Alliance & Leicester, said.

"Some people may be waiting to see how the economy fares in the early part of the year, but confidence in the housing market in the longer term remains buoyant."

The group also found that intentions to move in the next two years among people in their 20s, who are most likely to be buying their first home, increased slightly to 26% from 25% three months ago.

Property ladder

There was also a big increase among people in their 50s who expect to buy a new property, with 9% planning a move in the next 24 months, up from 5% the previous quarter.

The research also found that the main reasons people gave for planning to move were associated with wanting to move up the property ladder, with 22% of would-be buyers wanting more bedrooms, 13% wanting a bigger garden and 6% looking for a garage or off-street parking.

Around 17% of people are hoping to buy their own place because they feel the need to be independent, while 16% want to get on to the property ladder because it will be cheaper than renting.

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Your comments:

Current house prices are absolutely crazy as is anyone who mortgages the rest of their life to get hold of one Ian Ferguson, Dunoon, Argyll

Regarding property prices I'm certain that prices will soon start to fall due to an expected rise in interest rates and the fact that fewer people are able to purchase their first house due to inflated prices causing demand to fall. Current house prices are absolutely crazy as is anyone who mortgages the rest of their life to get hold of one. Why not move to cheaper areas of the country?
Ian Ferguson, Dunoon, Argyll

Since when has it been a right to own your own home? Why do people expect to own a house in their twenties? A house is subject to the same laws of supply and demand as everything else in the world, when there is not enough supply to match the demand then the price rises. Pure and simple capitalism, don't like it? - vote communist.
Paul, Norfolk, England

My partner and I are both graduates working full time. We have saved for a deposit but find that we can't get on to the property ladder. The lowest price property in our town is about 100k - for a tiny two bedroomed house with no parking or garden. We have no option but to move out of town and commute in from a nearby city. I am increasingly resentful of rich people buying second holiday homes in the Lakes.
Sarah, Penrith, Cumbria

I wouldn't buy a house in this country even if it was given to me. A two up, two down terrace house in this country is around £75,000.00, a couple of years ago you could of bought a four bedroom detached for not much more than that. Get out of the country, that's what I'm doing.
Lori, Manchester, UK

20 years ago, for many people, a car would cost the same as a house (around £20k). Cars have become more reliable, safer and cheaper to make and their price has fallen. Houses however which were bought for around £20k back then, are now worth £100k+. Why does 20 years worth of bedbugs, hair and skin improve their value so much?!
Julian, Midlands, UK

In Lincoln the new University has had a huge impact on house prices. Competition between various agencies buying houses for student accommodation has caused big problems for those trying to step onto the fist rung of the property ladder.
Amanda, Lincoln, Lincolnshire

Elaine, I am a 27 year old university lecturer. The smallest and cheapest flats in Oxford start at ten times my salary. I too have saved for stamp duty, moving costs and a deposit but even with a maximum mortgage of 4 times my salary I would still be around £80K short of any property here. Please explain how I can possibly breach that gap by 'giving things up'.
Rachel, Oxford, UK

I am 28 years old and still living with parents. Why? Simply because I can not afford to do anything else Drew, Birmingham, England

I am 28 years old and still living with parents. Why? Simply because I can not afford to do anything else. With the average price of small one and two bed flats and houses in Birmingham exceeding £100,000 what chance have I got. A single person earning £16,500 will get a mortgage for £50,000 - half of what is needed to purchase something very basic. Elaine from Reading said that first time buyers don't want to give up anything. The simple truth is that we could give up everything and still never afford to buy our own homes.
Drew, Birmingham, England

Property ladder? What property ladder? Property barrier more like. Despite a reasonable salary and deposit I can't afford a thing. I think the price of property in this country is scandalous, but no-one does anything because all the middle-aged middle class people have benefited, to the detriment of the young and less well off. I things don't improve, I will follow my brother who saw sense a year ago and emigrated, because I detest renting.
Phil Pierce, Nottingham

As first time buyers, myself and my fiancée (both F/T employed) find it impossible to get a mortgage that would be anywhere close to the value of a property to suit us long term. Even if we could secure a large enough mortgage, would we really want it?! When interest rates begin to rise as they surely will, repayments will be far more difficult to meet on such a large amount and thus may lose our property. People who think fixed rate (2-5 years) are the way forward are just not thinking long term!
Matthew Sayer, Weston-Super-Mare, England

No, and why? Because I have saved for all moving expenses, including the Stamp Duty, I have spent very carefully over the past four years, to enable me to move on again. I believe if people want to really own a house they can. They have to cut back, which is something most young people don't want to do to get on the property ladder. When I first started out 20 years ago, we had no central heating, no phone, no TV, donated furniture etc and we ate basics. It put us in good stead for the future.

First time buyers these days don't want to give up anything, they still want the flash cars, holidays, the mobiles, the TVs etc all those items us in another generation gave up. I think the reason most can't get on the property ladder is because they are not willing to save and sacrifice a few luxuries. I do and I move on.
Elaine, Reading, Berkshire