A recent ING International Survey has found that Luxembourg residents are losing confidence in the purchasing conditions of property for new entrants into the market.
The 'ING International Survey on Homes and Mortgages' surveyed 15,000 people across 15 countries in order to determine the variation in consumers' views regarding the price and affordability of housing.
95% of those surveyed stated that it was becoming increasingly difficult to purchase a property, 15% above the European average, commenting that this was particularly true for new entrants. These results show Luxembourg as ahead of both the United Kingdom and Germany in this respect, at 89% and 59%, respectively.
76% of respondents demonstrated a belief that prices will increase over the next twelve months, which represents the second-largest score after Turkey at 82% and 20% higher than the European average of 56%. The same figure of 72% felt that society would benefit from a fall in house prices.
Turkey and Luxembourg also ranked first and second respectively in terms of residents' opinions that low interest rates drive property prices up. The Grand Duchy was found to stand at 45% as compared to 29%, with Turkey even higher at 55%.
"Across the continent and in the US and Australia, consumers hold the view that first time buyers are at risk of having the door to home ownership slammed in their face," commented ING Senior Economist, Ian Bright. "Even homeowners would consider it a good thing if house prices fell, which may indicate people are not only worried about the high level of house prices, but also realise that house prices cannot keep rising forever.
Pointing out that it was not all bad news, Bright continued: "The burgeoning economic recovery across the continent comes into play here. This will improve people's lives in many ways but the ING International Survey shows something needs to be done if the next generation is to benefit from bricks and mortar".
Top photo by Shutterstock. Bottom graph by ING
