Economic downturn puts property plans on hold

March 24, 2010, 9:11 PM GMT+0

Faith in the British housing market has been left damaged following the dramatic effects of the global economic downturn on the national mortgage sector, a survey conducted on behalf of New Homes Marketing suggests.

Among British 25-54 year-olds, an average of 54% thinks that the current economic climate has put their property purchasing aspirations on hold. As this age group is perhaps more likely to have better job security, savings, or want to settle down, this finding may be of particular significance to the market as a whole.

Back with Mum and Dad

The decreased rate of lending is likely to be one of the key reasons behind the lowered investment in property, but for many young people (and their parents) the reality is that 30% of 18-24 year olds feel that they have no choice but to stay at home until they perceive the economic crisis to be over.

While it is true that just over a quarter (26%) of people won’t be investing in the housing market due to difficulties in finding a mortgage, and 23% say a general lack of faith in the market has halted their plans, a significant 44% instead cited rising costs and bills as the primary reason why their plans have been curtailed, as saving for a deposit has become increasingly challenging. 60% of 18-24 year-olds said this, rather than mortgage difficulties, was their main restriction to buying a property.

For survey details and full results, please click here