Budding homebuyers hold fire as four in 10 wait for property prices to drop

Four in 10 aspiring homebuyers are holding off on buying a property in anticipation that house prices will go down, however half of people feel confident they already have enough money in the bank. A poll of 2,000 adults who do not currently own a home found prospective buyers have, on average, around £36,000 set aside for their first property. In London, would-be first-time buyers have amassed even larger deposits, with average savings standing at more than £46,000.

Even though many are waiting to see a dip in prices, 45 per cent still want to save a deposit worth at least 20 per cent of their ideal property's value before buying, despite only needing five per cent to get onto the ladder. Another 29 per cent want to ensure they have a substantial emergency fund in place before committing to a purchase.

Oli O'Donoghue, head of mortgages at HSBC UK, which commissioned the research, said: “Wider market conditions can change frequently, which can make people feel they should wait a little longer before making a move.

“While it's natural to keep an eye on what's happening in the market, and there can be a tendency to try and find ‘the right time’ to buy, buying a home is a really individual journey and should also be viewed through a personal lens.

“Waiting for the perfect time could also mean passing up the ‘perfect’ home, so those who are financially ready may benefit from exploring their options, rather than putting their plans on hold.

“Where you are in life, your financial position and your longer-term goals are all important considerations.

“For many people, the decision to buy isn't just about what the market is doing today, but whether they feel ready for such a significant commitment.”

The research also found 77 per cent of prospective buyers are keeping a close eye on house prices in their local area. Even among those who already have enough saved for a 10 per cent deposit, 83 per cent remain cautious about taking the plunge. For some, the right time to buy is as much about reaching personal milestones as it is about what’s happening in the housing market.

One in 10 want to know where they want to live long-term before buying, while nine per cent are waiting for a pay rise or promotion. A further eight per cent want to be in a long-term relationship before taking the plunge. It also emerged 30 per cent hope delaying their purchase will allow them to buy a "forever home" rather than a "starter home", according to the OnePoll research. Meanwhile, 18 per cent believe waiting could help them secure an additional bedroom.

Oli O'Donoghue, from HSBC UK, added: “Buying a home is one of life’s biggest milestones, and it’s natural to want to feel confident that you’re making the right decision for your future.

“While there’s no shortage of predictions about the housing market, everyone’s circumstances are different.

"Understanding what you can afford, exploring the options available to you and thinking about your longer-term goals can help you make a decision that feels right for you.

“Speaking to a financial expert can help people navigate their options, understand the steps they can take towards homeownership and feel more confident about moving forward with their plans.”