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's 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's 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.”