Funds stashed away by cancelling buyers

Potential homebuyers have millions of pounds in their pockets which they have decided not to spend on housing deposits due to delaying plans to get on the property ladder, new research has suggested.

A study by Abbey Mortgages has revealed that 1.1 million people have decided to delay making a purchase for at least a year, compared with 624,000 who are looking to buy in the coming year.

The bank said the people who have delayed buying possess a combined total of £31 million in funds stashed away, which it suggested could be used to make money in a high interest savings account.

However, those still keen to get on the housing ladder as soon as possible while not having to deal with the idiosyncrasies of the current market could put the money towards finding land on which to build their own home.

The Royal Institution of Chartered Surveyors' survey for March indicated that 49 per cent more surveyors recorded a fall than a rise in the number of new buyer instructions in March, up from 39 per cent in February.


© Adfero Ltd