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65 per cent of home buyers put off by interest rate rise

11 May 2007

  • 34 per cent already concerned before further rate rise
  • 21 per cent say today’s rise WILL put them off buying a new home
Research released today by leading property services company, movewithus, has revealed that almost two thirds of people are being put off home buying by recent interest rate rises.

Would a rise in interest rates next month put you off buying a new home?

Answer:

Percent:

I am already concerned about the current rate without it rising again
34%
not at all
24%
I think it will rise next month and it will put me off buying a new home
21%
I am sure it will rise next month but it won't put me off my house hunting
11%
only a little bit
10%

Sean King, movewithus Chief Executive, commented: “Our research shows that house hunters are thinking again about buying property.  The recent interest rate rises have already had a minor impact on the property market but today has seen us reach a six year high.  This is the fourth rise in nine months and our research shows that consumers are now really concerned about increased mortgage repayments.  Nobody can tell if further rate rises are in the pipeline, but if so, it could have a dramatic impact on home sales throughout the UK.”

With the introduction of HIPs on 1st June the housing market looks to be under even more pressure. movewithus is advising homebuyers to take a longer term view as the demand continues to far outstrip supply and the overall upward trend in house prices is unlikely to be challenged. Buying a property is still an affordable lifestyle choice with all the benefits of a good investment.

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