HSBC mortgage report - housing market is suffering a generational divide.

According to a recent HSBC mortgage report, a generational divide may cause stagnation to the UK housing market in 2012.

Young borrowers could find themselves unable to make a property purchase as older established home-owners may not be willing to sell.

The HSBC mortgage report for 2012, the Moving Home Mortgage Survey, questioned more than 2,000 individuals about their plans for buying and selling a home during the six month period up to the middle of 2012. The newly published report reveals that out of the 2000 people questioned, only 12 per cent are considering moving or buying a house during the period advised.

Of those home-owners planning to stay put, 61 per cent of individuals who were aged 55 plus said they were content with their present home, compared with only 28 per cent who were in the under age 34 group who said the same thing.

Those people aged 34 and under advised that their reasons for not taking on a mortgage were three fold, they did not have a large enough deposit to put down, they had concerns over mortgage refusal and had a fear of losing their job. In the 55 and over age group the primary reason quoted for considering a move was to downsize to release some of the equity that was held in the property.

A HSBC spokesperson commented saying that the HSBC mortgage report suggests that young people wanting to get on the property ladder, are being dissuaded from buying a house because of concerns over financial stability during the current economic climate.

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