2m Brits think that house price falls are a good reason to move

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by Kay Murchie

According to research from Abbey Mortgages, falling property prices means 1.2 million UK homeowners are planning to move to a bigger property over the next year.

A correction in the housing market means Britons are on the lookout for a bargain.

In addition, 827,000 homeowners are looking to sell up in order to rent, with a view to the market reaching a low before they buy again.

However, 1.1 million who are struggling during the ongoing credit squeeze means downsizing their property in a bid to free up capital.

Commenting on the research, Phil Cliff, director of Abbey Mortgages, said for some people, a falling house price environment is not necessarily bad news.

While the bulk of homeowners are planning to stay put and wait for the current volatility to end, 2 million think that house price falls are a good reason to move, continued Mr Cliff.

This could be because house price falls bring a larger property within their grasp or because they think they can cash in if they sell up now and wait for the market to hit its bottom, adds Mr Cliff.

Abbey Mortgages advises seeking advice before making this sort of move as for most people, their house is their largest asset.

Abbey’s research also finds that the current uncertainty surrounding the housing market means that 12% are in wait and see mode.

Research earlier this week from the Council of Mortgage Lenders discovered falling house prices suggest that there is likely to be an increase in the number of people who are in negative equity (where their mortgage is worth more than their house).