The proportion of Britons looking to buy a new home over the next two years has remained unchanged since the autumn, indicating that Britons are not being put off buying by warnings of impending base rate rises.

However, the proportion of those looking to buy in the next 12 months has fallen to its lowest level since the Alliance & Leicester movingimproving index started in 2000. Only four per cent are looking to make a purchase in 2004, down one per cent year-on-year and five per cent since January 2001. However, overall intentions indicate continued confidence in the housing market.

According to the latest figures from the movingimproving index, 12 per cent of adults are looking to buy a home in the next two years, the same proportion as last quarter and one per cent up from 12 months ago.

While housing reports indicate that first time buyers are scarce, the new findings show that intentions to move have actually risen amongst those likely to be buying for the first time – those in their 20s. Amongst this group, 26 per cent plan to buy in the next two years, up from 25 per cent three months ago. Older homebuyers – those in their 50s – also seem confident in the housing market, with nine per cent planning a move compared to five per cent last quarter.

The index has also found that reasons for moving are dominated by the desire to move up the property ladder, with 22 per cent of would-be buyers wanting more bedrooms, 13 per cent wanting a bigger garden and a further six per cent wanting a garage or off-street parking.

Paul Cooper, Head of Mortgages at Alliance & Leicester, said: “Although there continue to be warnings of interest rate rises, the latest movingimproving findings suggest that buyers feel that any increases will still be affordable.”

“Some people maybe waiting to see how the economy fares in the early part of the year, but confidence in the vitality of the housing market in the longer term remains buoyant.”

Intentions to move:

• Overall, 12 per cent of buyers are planning a move: four per cent within 12 months and a further eight per cent within two years. This is the same proportion as last quarter but one per cent up year-on-year: in January 2003, 11 per cent of Britons were planning a move within two years.
• As in previous cycles, men are more likely to be planning a move than women (14 per cent vs. 11 per cent).
• Those in East Anglia are the most likely to be planning a move (17 per cent). The Scots are the least likely to be planning a move, with only eight per cent indicating that they will be buying another property in the next two years.
• Intentions to move amongst those living in the South West have risen to 14 per cent from nine per cent last quarter. In the East Midlands, intentions have risen to 15 per cent from seven per cent last quarter. In London, however, intentions to move have fallen slightly: from 16 per cent last quarter to 15 per cent now.

Reasons for moving:

• Speculation of an impending baby boom might have led to an increase in the proportion of people moving primarily because they want more bedrooms; this reason has risen to 22 per cent from 17 per cent last quarter. Wanting a bigger garden is the key reason for 13 per cent of would-be buyers, up from 12 per cent last quarter.
• The New Year seems to have inspired many to move to a new area. The proportion of people moving primarily for a change of neighbourhood has risen to 14 per cent from only eight per cent last quarter. A further three per cent of people are buying because they dislike their existing neighbours, up from two per cent last quarter.
• Buying being cheaper than renting remains a key reason for people to buy a new home, despite November’s base rate rise and house price inflation, with 16 per cent of buyers citing this, up from 14 per cent last quarter.
• The need for independence has risen as a reason for moving, with 17 per cent citing this as their main motivation, up from 15 per cent last quarter. This rises to 29 per cent of would-be buyers in their 20s.