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First-time Buyer

Homeowners more worried about house prices than negative equity

Samantha Cordon
Written By:
Samantha Cordon
Posted:
Updated:
07/04/2014

The majority of British homeowners believe high house prices are more of a problem for the housing market and the wider economy than negative equity.

Research conducted by the Homeowners Alliance found 76 per cent believe high prices pose a problem with the lack of ability for first-time buyers to get onto the property ladder and saving for a deposit also highlighted as major concerns.

The survey found that in ten of the twelve UK regions house prices rising excessively was more of a problem than negative equity.

This problem is most acute in London with more people in the capital saying house prices (55 per cent) and housing availability (44 per cent) are very serious problems than anywhere else.

Nationally the appetite for home ownership is on the rise with 68 per cent of non-homeowners eager to own compared to 65 per cent in January 2013.

However, nearly two-thirds (64 per cent) say that stamp duty rates are a problem.

Homeowners Alliance chief executive Paula Higgins says: “Despite talk about the London bubble, worries about high house prices and the shortage of housing has become a national issue.

“Talk about the housing crisis has spread across the UK, as homeowners everywhere have become worried that housing is becoming unaffordable and owning their own home is becoming an impossible dream for young people. This is the true ‘cost of living’ fear – people can’t afford the roof over their head.”


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