The latest research from the Nottingham Building Society has found that around one in four homeowners planning to move in the next six months said that rate reductions were the driving factor behind their decision.
But their brokers research warns rate cuts may have ended – only 16% of brokers questioned expect any further reductions while 23% are forecasting slight increases and 56% expect rates to stay where they are.
The study by The Nottingham shows 20% of homeowners are considering moving property over the next six months. The main reason is the fall in rates which means buyers have more equity and can afford more expensive properties.
But 17% of potential movers want to buy less expensive property and release money to use for other purposes while just over one in ten (11%) homeowners thinking of moving say that their finances have deteriorated and they need to move to a less expensive property so they can release cash to help with their living costs.
By contrast, 15% want to move upmarket and buy more expensive homes because they have had a pay rise.
Ian Gibbons, Nottingham Mortgage Services Senior Mortgage Broking Manager said: “This is traditional home buying season and our research shows that many homeowners are thinking about it. The key reason is that mortgage rates have fallen and are extremely competitive at the moment which makes finding a good deal possible if you search the whole market. In the first three months of this year, we saw a 49% increase in mortgage enquiries compared to the fourth quarter of last year.”
On a regional basis, the research reveals that 27% of people in the East of England are considering moving in the next six months, the highest of any region. This is followed by South West and Wales (26%), Yorkshire & Humberside (24%) and the South East and London (23%).