‘Fifth of homebuyers delay house purchase’
The A&L movingimproving research revealed 21 per cent of homebuyers admitted they play the waiting game because of overpricing but nearly three-quarters (71 per cent) said prices have increased while they have waited. The average amount a property rose over the average wait of three years and ten months is £33,689 while almost a fifth (19 per cent) said the value of the property they had their eye on went up by over £50,000.
78 per cent of people think properties are overpriced and 15 per cent are waiting for what they hope will be a drop in prices. Three-quarters of this group (76 per cent) are prepared to wait over a year and of these a third (33 per cent) are prepared to wait over five years.
Stephen Leonard, director of mortgages at A&L, said: “The research highlights that some homebuyers are playing the waiting game to see if house prices will fall. It remains to be seen whether waiting will pay off going forward.
“The delaying tactics signify that homebuyers are being cautious about the property market and are considering their choices carefully before leaping in. There are various ways that homebuyers can get a foot onto the ladder; part of that decision is choosing their mortgage deal carefully.”
Andy Frankish, managing director of Mortgage Talk, said: “The market is definitely in a period of stability and general slowdown. This stability could bring down the waiting period for homebuyers especially with the possibility of further interest rate cuts and such a controlled environment. I expect the coming year to be one of the most uniform month-on-month for quite some period.”