One in four people plan to buy a new house in next five years

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According to the mortgage providers Santander, research shows prospective house buyers are optimistic about buying a new property.

The findings reveal that one in four (25 per cent) of the adult population plans to buy a property to live in in the next five years, despite a stagnant housing market.

The research, conducted amongst existing and non-homeowners, found that young people expect to be the most active during this period, with nearly half of 18 to 34-year olds (48 per cent) intending to buy a new home in the next five years. This compares to one in five 35 to 54 year-olds (21 per cent) and 12 per cent of those aged 55 or over.

Almost two thirds (61 per cent) of those who intend to buy a property in the next five years are currently married or living together with a partner, with the remainder currently not co-habiting.

The research reveals that 6 per cent of these prospective homebuyers intend to enter the housing market in the next 12 months. Nearly half of these buyers (46 per cent) are in the 18 to 34 age group, with a further 34 per cent coming from the 35 to 54-year olds.

Four in 10 (40 per cent) of those intending to buy in the next year have no children, and a further 38 per cent have a child aged 10 or under. One in five (19 per cent) of those planning to buy in the next year has children aged 11 to 17 and the same percentage have grown-up children.

A further 7 per cent of people say they intend to buy a new home in one to two years-time, again dominated by young homebuyers aged 18 to 34 (47 per cent). More than one in eight adults (13 per cent) plan to buy in two to five years-time.

People in Wales are set to be the most active in the property market over the next five years, with 32 per cent of them saying they will buy in that period. However, those in the North East will be more active in the short-term, with almost one in 10 (9%) planning to buy a new home in the next 12 months.

Phil Cliff, director of Santander Mortgages, commented: “Despite a slower market, many people remain optimistic about the possibility of finding a new home in the near future. With house prices still considerably below the peaks of 2006 – 2007, prospective buyers certainly shouldn’t give up their hopes of buying a new property, as there are many bargains out there.

“With interest rates remaining at an all time low, there are also some great fixed rate mortgage deals to be had which is why we believe housebuyers should remain positive.”