First time buyers 'have eyes wide open'

18-Sep-2007

A new report investigating reasons for house purchase has gone some way to dispelling the theory that many first time buyers buy simply for reasons of investment.

The study from the Building Societies Association (BSA) found that 88 per cent of people cited the simple factor of home ownership as their main reason for purchasing a property, with making money from their property important to just 45 per cent of respondents.

Nonetheless, almost nine in ten admitted that they saw their property as a good investment for their pension. Though 71 per cent were accepting of the fact that prices could fall this year, 89 per cent believed that prices would rise in the long-term.

"For most, the primary motivation for buying a property is derived from the satisfaction of owning a home, rather than the financial motivations of capital appreciation," commented BSA director general Adrian Coles.

"Reassuringly for those critics, the results prove that the majority of buyers have put considerable thought into their purchase, and have entered the housing market with their eyes wide open," Mr Coles added.

Almost a third of grandparents are currently providing financial help to their grandchildren in order to help them buy a property, CreditExpert revealed last month.

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