House buyers' confidence holds

Despite recent interest rate rises the number of people planning to move within the next year remains stable.

11:10 10 August 2004

Despite recent interest rate rises the number of people planning to move within the next year remains stable.

This is according to the latest findings from Alliance & Leicester's movingimproving index.

The findings show that four per cent of Britons expect to move house within the next year - only a slight decrease on the five per cent who meant to move in the spring.

Long-term confidence in the property market is similarly stable, with seven per cent claiming they will move within the next two years - the same number as in the spring.

"It is encouraging to see that confidence in the property market remains buoyant, despite the interest rate rises we have seen over recent months," commented Paul Cooper, the head of mortgages at Alliance & Leicester.

He added: "The reasons for moving remain positive, showing that it really is business as usual for the nation's homeowners."

But Mr Cooper did add a word of caution: "I would urge any future movers to borrow sensibly so their repayments remain affordable should we see further rises in the base rate."

When questioned about their motives for moving the main reason given (18 per cent) was that people wanted a property with more bedrooms.

Regarding property as an investment was the second most popular response (17 per cent), with people hoping to take advantage of higher prices and sell up in order to make money.

Regionally, the index found that people in London and the north-west are the most likely to be planning a move within the next two years, with 16 per cent of people questioned in these regions preparing to change homes.