Property ignorance

Over one third (34%) of people believe that buying ‘off-plan’ means purchasing a property without planning permission and one in five (18%) think it means buying a property in the countryside. Only 40% got the correct definition – to buy a property before it has been built.

Other findings in the poll revealed the public’s confusion as to the role of estate agents, with 38% believing that they are responsible for conveyancing. Even more surprisingly, less than half – 44% - correctly assigned this task to legal specialists and solicitors.

Almost one quarter (19%) also believed that estate agents acted in the interests of themselves rather than sellers.

Interest rates

Interest rates may have increased for the fifth time since November last week, but few people will realise how significant this could be for their personal wealth. Over one quarter (26%) of people think that the stock market most influences the setting of mortgage rates by banks and building societies with less than half (41%) realising the importance of the Bank of England base rate.

APR

With consumer debt in the UK now topping £1trillion, you would expect the majority of people to understand that APR is the ‘annual percentage rate’ of interest charged on their debts. However less than half (45%) of people actually got this right, with a staggering 33% believing that the acronym actually stands for average price rise. More worryingly, assisted payment return was selected by 12% of respondents.

Nick Clark, Managing Director of Homebuyer Events, organisers of the Property Investor Show said: “The results of this survey may seem light-hearted but in fact it is quite worrying that the general public do not seem to have an understanding of these issues."

"Buying a house and signing up to a mortgage is possibly the largest financial commitment we make in our lives and yet the sheer number of people who do not fully understand the basic terms and processes is very concerning."

“We would advise anybody who owns their home or is considering investing in property to make sure they have done their research, which is where events such as the Property Investor Show prove their worth.”

The Property Investor Show will be held from 17 to 19 September 2004 at the ExCeL Centre in Docklands, London. The Show will provide expert information and advice on all aspects of property investment, from financing your purchase, buying new property, or investing overseas.

For further information on the Property Investor Show visit www.propertyinvestor.co.uk