Two-thirds of potential first-time buyers delay home ownership

New research from Abbey mortgages indicates that two-thirds of potential first-time buyers are delaying their first step on the property ladder because of falling house prices and predictions of a slowdown in the economy.

According to the Abbey survey, 14% of non-homeowners were considering buying a property at the start of 2008.

However, in the space of two months sentiment has changed and only 36% of this group now expect to proceed with a purchase.

Seventy four per cent of all potential first-time buyers questioned said that uncertainty over house prices and the economy were of serious concern.

Of this group, 69% expressed fears that house prices will fall, while 67% reported that their finances were already too stretched to consider a mortgage. Some were worried about job security.

Potential first-time buyers in Wales and the South West were the most nervous in the country.

Fifteen per cent of respondents living in these areas were planning to buy their first property at the start of 2008; 87% of this group have now decided to delay their purchase.

Across all regions, the under 25s were most likely to delay entering the property market.

In the 25 to 34 year age group 21% of non-homeowners were considering purchasing their first property at the beginning of 2008; this proportion has now declined to 9%.

Discuss this in the Finance Markets forums

Story link: Two-thirds of potential first-time buyers delay home ownership