Renovation desires 'could hit supply to first time buyers'

03-Sep-2007

The increasing tendency for Britons to view their homes as investments and a desire to renovate them accordingly could have serious consequences for the housing market, not least first time buyers, a new study has suggested.

Research from Standard Life Bank has found that three quarters of homeowners are put off from moving by the cost of doing so, potentially further reducing the already limited number of properties being put up for sale.

Instead, many are opting to improve their existing home, with one in ten saying they have already added an extra room to their property, the study added.

"With just one in ten homeowners in their 30s and 40s saying they plan to move house soon, the property ladder as we know it is set for a shake up," commented Standard Life Bank trends expert Ashley Ramsay.

"Having chosen where they want to live and settled into neighbourhoods, they are loathe to start over again," Ms Ramsay added.

However, a study produced last week by Zurich Insurance found that Britons' desire to move is as great as ever due to a continued pursuit of the so-called 'dream home'.

But industry figures have advised of late that the recently launched Home information packs (Hips) would also have a detrimental effect on supply due to fears over cost.

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