People happy to wait for new home

Published:
15 August 2008
Topic:
News,Money,Mortgages

New research has shown that the shortage of available mortgages is not putting people off buying new homes as much as the fact that they expect house prices to fall further.

According to a survey by mortgage lender HSBC, 98% of potential housebuyers have no problem arranging a mortgage, but the home buying market is slowing sharply because people are not confident in their ability to fund a new property as the cost of living rises.

One in 10 are keen to move house or get on the housing ladder, but have decided to wait for at least six months. Just 2% said they had difficulty getting a mortgage, but 37% said they did not want to buy while prices are expected to fall further and 36% said they were worried about the rising cost of living.

Martijn van der Heijden, HSBC's UK head of mortgages, said: "There is a perception at present that banks are not offering mortgages. In fact, our latest study suggests that access to finance is not a major issue. Instead, many buyers are taking a wait and see attitude, naturally some feel uncomfortable buying a home which may be worth less in six month's time."

Copyright © PA Business 2008

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