Money News
Fears over house prices and the state of the economy have convinced almost two-thirds of first time buyers (FTBs) to delay their first step on the property ladder, according to new research from Abbey Mortgages. At the start of 2008, 14% of non-homeowners were considering investing in their first property but now just 36% of this group are planning to proceed with their purchase - 64% of FTBs having put their property search on hold.
The research found that 74% of all FTBs say speculation about house prices and economic uncertainty has dampened their enthusiasm. Of these, 69% fear that house prices will fall, whilst 67% feel that their finances are already too stretched. Others are worried they might lose their job.
According to Abbey, FTBs in Wales and the South West have been affected the most of any part of the country. In these areas 15% were planning to buy their first property at the start of 2008 but a massive 87% of this group have now decided to delay.
Meanwhile, young FTBs were most likely to be delaying entering the property market. Indeed, of the under 25s 11% were considering buying their first home at the beginning of the year but now just 2% will be doing so - equivalent to 18% of the original FTB group.
In the 25 to 34 years age group, the most active FTB group, 21% of non-homeowners were considering purchasing their first property; however this number has fallen away by 58% with just 9% now intending to purchase a home over the next 12 months.
04 March 2008 © Moneyextra.com
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