‘Can't buy, won't sell': The UK housing stagnation in 2012

With first time buyers priced out of the market and homeowners unwilling to sell, only 12% of Britons plan to buy or sell in the first six months of 2012

The UK property market is expected to stagnate in 2012 as first time buyers struggle to get a foot on the ladder and as homeowners opt to stay put, according to a new survey by mortgage lender HSBC.

In its 2012 Moving Home Survey, HSBC found that out of 2,000 adults, just 12% said they were considering moving home or getting on the housing ladder.

The main reasons why people aged 34 and under are not planning to buy or sell a property are insufficient deposit, concern about not getting a mortgage and fears about their employment prospects.

While the financial obstacles facing younger Britons are also likely to put pressure on the housing market so too is the trend of homeowners opting to stay put. Available housing stock is expected to be limited.

However the housing market is expected to be more buoyant in London, where 18% of people are thinking of buying and or selling property in the next six months.

HSBC Head of Mortgages Peter Dockar said, "Our research suggests that the current economic climate is of particular concern to younger people who either want to get on the housing ladder or move on to a larger property.

"All this supports the prediction of the Council of Mortgage Lenders (CML) that lending will fall this year."