News: New Homes Marketing Board upbeat

Tue, 05 Aug 08

UK householders remain remarkably upbeat about the property market despite the recent downturn in prices.

According to new research conducted by the New Homes Marketing Board (NHMB), nine out of ten people believe buying a home is a sensible investment in the medium or long term.

However, the likelihood of their being able to buy a home is being limited under current conditions in the housing market, the survey showed, with 60 per cent of those quizzed saying they had been forced to postpone a property purchase for this reason.

David Pretty, chairman of the NHMB, said: 'Our survey shows that underlying demand for home ownership remains very strong. In today's cooling market buyers should be able to take full advantage of lower prices and better deals.

'It's ironic, however, so many are prevented from doing so by the current shortage of mortgages, which cannot even satisfy current demand, as well as by higher rates of interest and the need for a much larger deposit.'

Expectations of falling house prices are also a key factor in the current market.

See also: Home Asking Price Index: The UK's Leading Property Market Indicator

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