Some homeowners planning to give up homeownership

A recent report has suggested that a large number of homeowners may actually be planning to give up homeownership for a period of time due to the turmoil that has hit the housing market.

With many predictions from industry officials indicating that house prices could plummet over the next two years, some homeowners are trying to sell high and buy low.

Around 18% of homeowners that were planning to sell soon said that they would be moving into rented accommodation for a while until house prices fell according to the report.

Many were hoping to make a good profit by selling whilst prices were still high and then buy once prices had fallen.

One official warned consumers that do this to be careful that they did not spend their equity. He said: ‘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.

The 14% who indicated they might move to rented accommodation because they have money worries will find it hard to get back on to the ladder if they spend too much of their equity.’

Another official said: ‘It’s a dangerous game to speculate on the property market with your own home and is not for the faint-hearted. The average property has to fall around 7% in value before you even break even once you take all the costs of selling, moving and then buying again into account.’