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Growing uncertainty dissuading borrowers from moving?
25 March 2008 10:30
Greater disinclination to spend is prompting many borrowers to renovate their existing property rather than move to a new one, according to a directory for rated tradesmen.
Brian Berry from the Federation of Master Builders predicted earlier this month that flat house prices and the high costs associated with buying a new home, such as stamp duty and lawyers' fees, would deter homeowners from moving up the property ladder.
Now RatedPeople.com has conducted research indicating that over three out of five borrowers have decided to remain in their existing homes for the present time due to the current state of both the housing market and the wider economy.
Co-founder Andrew Skipworth argued that increasingly costly mortgages and rising levels of personal debt are inducing borrowers to watch their spending, as is economic uncertainty fuelled by events at Northern Rock and in the US.
He also noted that one in four homeowners declared themselves willing to wait for up to two years before moving, explaining that they can spend the time renovating their existing property and then sell up once they can obtain a good price for it again.
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