Homeowners `concentrating on paying down their debt`

Homeowners in the UK are increasingly prioritising paying down their debt as opposed to trading up on the property ladder, it has been claimed.

According to Adrian Lowcock, senior investment adviser at Bestinvest, this means conditions in the housing market are unlikely to get better in the near future.

The expert was responding to Bank of England statistics, which indicated that homeowners in Britain reduced their mortgage debts by £8 billion during the final quarter of last year.

This meant that the amount of equity withdrawn by Brits was negative for the third consecutive quarter, while the amount paid off mortgages was at its highest since records began.

Mr Lowcock went on to state: "This indicates a lack of confidence in the wider economy."

Meanwhile, David Breger of HW Fisher chartered accountants recently described the figures as positive, stating they indicate that consumers are reducing their debts, the BBC reported.