The number of people looking to buy a new property in the next two years has risen for the first time since spring 2001. Despite warnings that house prices could cool during 2003, 12 per cent of Britons are planning on buying a new home during the next two years. This figure is up from the 11 per cent recorded in each of the last three quarters, according to the latest findings from the Alliance & Leicester movingimproving index.

The most common reason for moving is to save money, with one in five (20 per cent) people saying they are thinking of buying a home because it is cheaper than renting. The lowest interest rates for more than forty years and the fierce competition amongst mortgage lenders to provide good deals are also likely to be affecting this view.

Younger buyers appear to be driving the property market: more than one in four (27 per cent) people in their twenties are intending to buy within the next two years. Amongst this group, 28 per cent cite buying being cheaper than renting as their key motivation for wanting to get on the property ladder. However, an even bigger motivator is the need for independence, with one in three (33 per cent) people in their twenties looking to buy because they want their own place.

Paul Cooper, Head of Mortgages at Alliance & Leicester, said: “Although there is some uncertainty in the housing market, low interest rates and fierce competition amongst mortgage lenders continues to make buying very attractive.

Cooper added: “The fact that so many people in their twenties are planning to buy is a very encouraging sign, and bodes well for the health of the property market and the investment that homebuyers are making.”

A&L’s quarterly movingimproving index asked a GB representative sample of 4,000 people whether they intended to buy a new home, and, if so, why.

Intentions to move:

• The number of people intending to buy a new home in the next two years has risen to 12 per cent, up from 11 per cent in each of the previous three quarters. However, the proportion of people intending to move is still down on the high of 15 per cent seen in summer 2001.
• Intentions to move within the next 12 months are stable at five per cent, with this proportion unchanged since Autumn 2001, but those looking to buy a house within the next one to two years has risen to seven per cent from six per cent in the last three quarters.
• Men are more likely than women to be looking to move, with 14 per cent saying they are thinking of buying a home within the next two years compared to 11 per cent of women.
• Those in their twenties are the most likely to be looking for a move (27 per cent), followed by those in their thirties (18 per cent). At the other end of the scale, only two per cent of those aged 60 and above are looking to buy a new home.
• Single Britons are more likely than their married counterparts to be looking to move within the next two years (17 per cent vs. 13 per cent), although they are equally likely to be moving within the next 12 months (both at five per cent).
• Londoners are the most likely to be considering a move, with 16 per cent of people living in the capital saying they intend to buy a home within the next two years. Those in the North West and South West are the least likely to be moving (10 per cent each).

Reasons for moving:

• With those in their twenties driving the property market, the most common reason why people are intending to move is the perception that buying is cheaper than renting, with 20 per cent of those who are thinking of buying a home in the near future stating this as their main reason, increasing to 28 per cent of those in their twenties.
• The need for independence is the second most common reason for moving, with 18 per cent of prospective buyers saying that wanting their own place is their main reason for buying.
• Almost one in ten (nine per cent) people are moving to make a financial gain on their property, despite fears of a fall in property prices, although this has fallen from 12 per cent in January 2003.
• Eight per cent of Britons are buying a new home because they want a change of environment and are moving to the countryside. This rises to a massive 24 per cent of those in their fifties.
• Other key reasons to move include wanting more bedrooms (14 per cent); wanting a change of neighbourhood (12 per cent); needing a bigger garden (nine per cent); and marriage (four per cent).