BSA Property Tracker December 2010
Considerable uncertainty remains in the UK housing market, together with many contrasting views, but the public considers the best time to enter the housing market to be within the next year.
The December 2010 edition of the BSA’s Property Tracker survey shows that:
The immediate outlook for the housing market remains uncertain
43% agreed it was currently a good time to buy property, 26% disagreed, and 24% neither agreed nor disagreed. A year ago 58% agreed it was a good time to buy.
On average, house prices are expected to be flat next year
The median price prediction is for prices to be the same level in a year’s time, although 33% thought that prices would rise, while 36% believed prices would fall in the next 12 months.
A substantial proportion believe property remains overvalued
38% of respondents thought that properties in their area were over-priced, with 25% believing that properties were over-valued by 10% or more.
The best time to buy property is believed to be within the next year
Most people would not wait long to enter the market, if they were able to. 59% would buy immediately or within the next year, given sufficient resources, and a further 11% would buy in the following twelve months. 12% would wait for two years or more. This suggests that even if prices are due to fall, most people expect them to bottom out within the next one to two years.
Commenting on the results, Paul Broadhead, Head of Mortgage Policy at the BSA said,
“Although the housing market remains uncertain, the public does not expect house prices to fall as dramatically as they did two years ago. As such, many expect that the best time to enter the market will be in the next year or so”
“However, barriers remain that might prevent potential buyers from acting on these perceived opportunities. Worries persist about job security, the ability to raise a deposit, and obtaining a mortgage from lenders. These factors might inhibit demand for house purchase from growing as strongly as it might.”
~Ends~
Notes to Editor
1. A full copy of the report is attached to this email.
2. The Property Tracker survey is conducted quarterly by YouGov plc for the Building Societies Association. All figures, unless otherwise stated, are from YouGov Plc. Total sample size in December 2010 was 2047 adults. Fieldwork was undertaken between 3-6 December 2010. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18 plus). Additional questions were asked in the December 2010 Property Tracker.
3. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 49 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 21% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
4. Photographs of Paul Broadhead are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk.
5. Contact
Fiona Cornes – 020 7520 5926 / fiona.cornes@bsa.org.uk
Katie Wise (nee Errington)
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ
Tel: 020 7520 5904
Fax: 020 7240 5290
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk
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