With house prices lower than they have been in several years, unbiased’s research shows 28% of people in the UK are currently interested in buying a property.
However, since Land Registry figures confirm house prices have fallen by 16.5% in the past year, it is not surprising that a quarter of these (7% of the adult population – more than three million people) are holding off looking at prospective properties until prices have fallen even further.
Another one in four are holding off buying to save up a bigger deposit, and this rises to almost one in five (18%) of those aged between 18 and 34, who plan to take their first step onto the property ladder once they have saved up a big enough advance.
The public mood suggests the balance of power remains firmly with the buyer. Half (50%) of the UK population feel they would be able to squeeze a vendor to drop their asking price by 15% or more due to the current climate, and 30% feel they could push for at least a 20% reduction.
Richard Winder, spokesperson for unbiased’s "find a mortgage adviser" said: "There is a general sense that investing in bricks and mortar will be out of fashion for many months to come and this, mixed with mortgage lenders’ much stricter criteria, is making many first-time buyers park their plans until there are signs of improving conditions. And those who are entering the market are doing so with high hopes of haggling vendors down to the bone on price.
"We would urge those who are currently considering their options, whether buying for the first time or remortgaging, to seek professional advice from a local whole of market mortgage adviser."
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