Hearts rule house buying decisions, not heads

Four out of five people buy houses for personal rather than economic reasons, according to a new survey from Alliance & Leicester.

17:10 18 October 2004

Of the people who are planning to move house in the next year, four out of five will buy for personal rather than economic reasons, according to a new survey from Alliance & Leicester.

The bank has found that just five per cent of people say they will move if property prices fall, with just six per cent saying a drop in interest rates (allowing them to borrow more on a mortgage) would be an incentive to move.

Instead, lifestyle reasons proved the biggest spur to move house.

Twenty-one per cent of people said that they would move house if they found their dream property. With more women (25 per cent) giving this as a reason to move than men (19 per cent).

The next biggest reason given for moving was that people needed more space for their families. This was the biggest concern for those in their 30s, with 25 per cent of people in this age group citing space as a reason to move.

While those in their 30s seek more space, those in their 60s want less. Not wanting to rattle around in a house is given as a reason to move by 44 per cent of people in their 60s.

"These findings show that despite rising interest rates and regular commentary on how the housing market is faring, people still look to personal factors - from needing more space to finding their dream house - to dictate whether they move house or stay put," said Paul Cooper, head of mortgages at Alliance & Leicester.

However he added that, while it is commendable that homeowners keep their own agenda, there are economic factors that should be taken into account.

"While the Bank of England's announcements may seem miles away from our own personal housing plans, changes in interest rates can have a real effect on our mortgage payments and what we can afford. It is advisable for homeowners to monitor such changes as they will play a large role in dictating their budget," he commented.

Along with the reasons mentioned, 13 per cent of homeowners think they will move as their careers progress, one person in eight (12 per cent) are looking to escape to the country - with men more likely to want to leave the hustle and bustle of city life behind (13 per cent compared with ten per cent).

Six per cent of people asked would buy a house simply to get a foot on the property ladder with just one per cent moving if they read the market has stabilised.