Alliance & Leicester: Homebuyers 'holding back'

15 November 2005
Homebuyers are holding out on sellers in the hope house prices fall, says Alliance & Leicester.

The mortgage provider found one in five people have delayed buying their dream home in the hope of purchasing it at a reduced price later on.

However, the waiting game has not paid off for many prospective buyers -almost three-quarters said house prices have increased whilst they have been waiting for them to fall.

Director of mortgages at Alliance & Leicester, Stephen Leonard, said: "In recent years the majority of those who waited to see if house prices would fall before, found that they had waited in vain since prices rose on average by £33,000 whilst they waited.

"It remains to be seen whether waiting will pay off going forward," he added.

Alliance & Leicester found one in five buyers saw the value of their ideal property increase by over £50,000, while those who waited more than five years to buy their home saw a steep increase of 87 per cent.

A recent report from the Scottish Executive found house prices in Scotland are rising almost four times faster than prices in England.

The average price of a house in Scotland rose from over £121,000 in April this year to over £132,000 in September - an increase of more than £11,000.

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