Homebuyers opting for the 'safe option'

The majority of people looking to buy property are putting plans to become owner occupiers on hold, it has been claimed.

Leading property agent Rettie and Co said that Scotland is embodying a wider trend seen throughout the UK, with prospective homebuyers abandoning the market over fears of negative equity.

And on top of falling house prices, analysts say the credit crunch continues to stop would-be homeowners from securing a mortgage due to the heavily constricted money markets.

Alluding to the Scottish market that Rettie and Co specialises in, managing director Simon Rettie affirmed: "There is a prospect of falling values in residential properties in Scotland, even in some of the preferred districts."

He continued: "The speed of what's happened is perhaps faster than what many people could have predicted and therefore people do the safe thing - which is nothing. I think you'll find people will just sit tight, take stock of what's happening and then make a decision of which way to go."

Experts have said that flats to rent in London are expected to undergo a surge in demand as more and more first-time buyers decide now is a perilous time to get on the property ladder.

Published 10th June, 2008

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