House hunters wave goodbye to DIY

http://news.bbc.co.uk/go/rss/-/1/hi/scotland/6348383.stm

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Rising house prices are leading buyers to search for "ready-to-live-in" homes that need little money spent on refurbishment, according to a survey.

Research by the Clydesdale Bank revealed that 37% of buyers are looking to move into a home that needs nothing done, up 60% in 15 months.

Buyers are now also reluctant to make such large offers - 63% would not pay more than 10% over the asking price.

After securing the deal, the study showed they are less likely to move.

Nearly two-fifths of recent first-time buyers expect to live in their current property for the next 10 to 15 years.

'Coming at a cost'

House price rises in Scotland outstripped the UK average last year, at 12.5% compared to the UK's 9.9%.

In December the average cost for a first time buyer in Scotland rose above £100,000 for the first time.

But Steve Reid, Clydesdale's director of retail banking, said that despite three interest rate rises in six months, about three quarters of buyers still seemed confident prices would continue to rise.

"Higher interest rates do appear to be coming at a cost though," he added.

"Buyers' budgets appear to be a lot tighter - which explains why they are offering less and looking for properties they can move straight into without much DIY.

"Should this trend continue throughout the year then prices may well flatten out and be nowhere near the levels of growth experienced in 2006."

Clydesdale also found that 74% of the 500 people surveyed had no plans to move house in 2007.