But brokers have simultaneously warned that 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.
According to Nottingham's research, 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 say that their finances have deteriorated and they need to move to a less expensive property so they can release cash to help with living costs.
By contrast, 15% want to move upmarket and buy more expensive homes because they have had a pay rise.
On a regional basis, the research revealed 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%).
In terms of the mortgages people are looking to take out, the research suggests that people expect mortgage rates to rise, with half (50%) of those planning to move home intending to take out a fixed mortgage. Just 8% plan to opt for a standard variable rate mortgage, 5% plan to take out a tracker and 2% intend to have an offset.
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.”
However Henry Pryor, housing market commentator, argued that there aren't enough homes on the market to fulfill people's home move plans.
He said:
"Of the nations 23.7m homes roughly two thirds are owned - half with a mortgage and half outright. There are lies, damn lies and then there are building society statistics. In this instance the Notts Building Soc (or is it Notts Mortgage Services?) has done a survey and from it concluded that 5m homes are coming to the market. There are about 740,000 on the market today, last month according to HMRC about 94,000 sold. This number of new instructions would be a very early Christmas present for estate agents but it would swamp the market and almost certainly pull the floor from under prices.
"Interest rates can’t go much lower. The market expects the next move to be up and when that happens the rise could be swift and sudden. Buyers already struggle post the Mortgage Market Review now that lending is more conservative and it’s unlikely that with house prices still rising in many places the Government would allow anything that would stimulate them yet further."
