View more on these topics

Younger buyers sustain property market

People in their 20s are driving property market, with one in four looking to buy a home within the next two years.

Despite homebuyer confidence falling to its lowest levels since its moving improving index began, Alliance & Leicester says 20-somethings represent the largest group in the UK with the intention to buy.

Only 11% of those questioned are planning on buying a home in the next two years, down from 15% a year ago. Intentions to move in the next 12 months have remained static at 5% for the last three quarters.

Warnings from commentators that property prices cannot continue to rise and may even fall in the near future are likely to be affecting people&#39s homebuying decisions.

Buying being cheaper than renting is now the main reason to buy a home, with 23% of people saying this is the most important factor in their decision to buy – up from only 1% in April 2001. This increases to 37% for people in their 20s who are planning to buy.

A&L&#39s quarterly movingimproving index is based on a representative sample of 4,000 UK citizens, and questions asked about their intention to buy and when they may do so.

Paul Cooper, head of mortgages at Alliance & Leicester, says: “Reports on the property market tend to swing between two extremes – doom and gloom on one hand and massive hype on the other. The truth is somewhere in the middle.

“Intention to buy has remained static for three quarters, but the desire of younger people to get on the property ladder shows that buyers have long-term faith in the UK housing market.”


What will the CML do?

From Shelia McKechnieAn open letter to Michael Coogan, director-general of the CML from the Consumers&#39 AssociationI am sure you are aware of the long-running scandal of usually elderly consumers left with ever-increasing levels of debt accumulated through the mis-selling of equity release schemes, particularly Equity Home Income Plans, in the late 1980s and early 1990s. […]

GMAC-RFC launches two-year fixed rate

GMAC-RFC has launched a new two-year fixed rate deal at 5.74% for the non-conforming sector. GMAC Residential Funding is offering two fixed rate options. The first is at 5.74% up to 90% LTV, adverse credit allowed, up to £3000 CCJs in the last three years; up to two missed payments in the last 12 months […]

Crystal Clear brokerage launched

Homebuyers will be offered fee-free and independent mortgage advice later this year with the launch of nationwide master-brokerage Crystal Clear Mortgages.Though it will not have a formal panel, Crystal Clear is in talks with over 20 lenders including Scottish Widows, Standard Life, Halifax, Abbey National and Birmingham Midshires as it prepares to launch the service.Crystal […]

Arsenal tie up deal with Bank of Scotland

Arsenal has teamed up with Bank of Scotland to launch the &#39Your Financial Arsenal&#39 range of financial services Your Financial Arsenal will also give supporters of the club the opportunity to show their affinity to Arsenal and gain from a range of exclusive benefits. Thousands of fans already carried Arsenal-branded credit card issued through Bank […]

income protection claimants

Generation Rent

By Denise Wond, Marketing Relationship Manager, Royal London We’ve heard a great deal about Generation Rent in recent years but what does it actually mean for consumers and advisers and has the face of the typical renter changed? The picture is certainly more diverse than it used to be Homeownership has fallen to 64 per […]


News and expert analysis straight to your inbox

Sign up