Homebuyers are using delaying tactics in the hope that house prices will fall, but the majority who delayed saw prices rise, revealed Alliance & Leicester Mortgages.

One in five (21%) people admit that they play the waiting game because they feel houses are overpriced. However, nearly three quarters (71%) say that prices increased whilst they have waited.

The average amount that a property rose while homebuyers pondered their decision is £33,689 over an average wait of three years and ten months. Almost a fifth (19%) of them said that the value of the property they had their eye on went up by over £50,000.

Homebuyers who waited over five years have lost out even more – as the average house price five years ago stood at £101,550 compared with £189,852 now – an 87% increase.

Currently 78% of people think that properties are overpriced – and 15% are waiting for what they hope will be a drop in prices. Three quarters of this group (76%) are prepared to wait over a year and of these, a third (33%) are prepared to wait over five years.

Stephen Leonard, director of mortgages at Alliance & Leicester, said: "In recent years the majority of those who waited to see if house prices would fall before, found that they had waited in vain since prices rose on average by £33,000 whilst they waited. It remains to be seen whether waiting will pay off going forward."

There are those who still bought a property, rather than waiting, despite their belief that the housing market was overpriced. A third (29%) said the main reason they didn’t wait was because they needed to move and had no choice but to buy.

Over a tenth (11%) of those who did not wait before buying a property said they still saw a considerable rise in value despite buying their home at what they felt was the ‘top of the market’.

Stephen Leonard adds: "Delaying tactics signify that homebuyers are being cautious about the property market and are considering their choices carefully before leaping in. There are various ways that homebuyers can get a foot on the ladder, part of that decision is choosing their mortgage deal carefully."

Other key findings reveal:

• 29% feel that house prices will fall soon, while over half (55%) believe they will not.
• Those in the East of England think further rises are likely (63%) while those in the West Midlands (37%) think property prices will fall.
• Of those who believe that house prices will fall in the future, a third (33%) have held this view for a year. In this time, house prices have increased by seven%.
• Those in their 20s are most likely to use delaying tactics and hold off from buying a property because of they think the market is overpriced (39%).