BSA: Job market pessimism dents housing optimism

BSA: Job market pessimism dents housing optimism

BSA: Job market pessimism dents housing optimism

Over half of people now believe that it is a good time to buy property, although uncertainty surrounding their personal circumstances and the perceived difficulty of obtaining a mortgage may prevent some of those people realising their property purchase dreams according to the fourth BSA Property Tracker survey.

The survey found that 54% of people believe that to some extent now is a good time to buy property in the UK. This proportion has grown consistently since June last year when just 27% believed it was a good time to buy property, and is a further improvement on the 46% who thought so in the last Property Tracker in December.

The biggest barriers to home purchase remained the same as in December – lack of job security, access to a large enough mortgage and raising a deposit.

The survey has also shown that people expect prices to fall by a further 6% 3 over the next year, but just under a third viewed falling prices as a barrier to buying at the moment.

Paul Broadhead, Head of Mortgage Policy at BSA said:-

“The survey shows increasing levels of interest in buying a property. With the Nationwide Building Society showing that property prices fell by more than 17% over the last year, coupled with lower interest rates, people are recognising that there are bargains to be found and they are increasingly interested in buying.

“However, it is also clear from the survey that it is the declining economic situation and perceived problems securing a mortgage that are viewed as preventing this desire to buy from being realised.

“Until economic confidence improves it is hard to see the feel good factor returning to the housing market.”

~ Ends ~

Notes to Editors

The Building Societies Association (BSA) represents all 55 building societies in the United Kingdom. Building societies have total assets of £395 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold over £235 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 37% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.

Photographs of Paul Broadhead are available from the BSA press office, or from the Association’s website at www.bsa.org.uk

This average is a median calculated by the BSA from Yougov data, excluding those that replied “don’t know” and assuming responses are evenly distributed through each range of prices that could be chosen.

All figures, unless otherwise stated, are from YouGov plc. Total sample size was 1980 adults.

Fieldwork was undertaken between 6th-9th March 2009. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
The next Property Tracker will be published on June 17th 2009.