Owner occupier numbers falling

More and more homeowners are falling off the property ladder as a consequence of the credit crunch, one new report has suggested.

The report said that fears over falling house prices had resulted in one in five home movers seriously considering cashing in on the value of their home and shifting to rental accommodation instead.

Some 14 per cent said financial concerns were the main factor motivating their possible move into the rental sector, citing damage to disposable incomes caused by the economic downturn.

Simon Preston, chairman of iammoving.com, commented: "You expect people to consider renting when the market is falling because there is a chance to make money, but 18 per cent is a high figure."

He said he understood the motive for the moves, but cautioned: "The 14 per cent who indicated they might move to rented accommodation because they have money worries will find it hard to get back onto the ladder if they spend too much of their equity."

According to official statistics, the number of owner occupiers in the UK fell by a record 83,000 last year.

News posted on 28th March, 2008