BSA Property Tracker March 2011

BSA Property Tracker March 2011

BSA Property Tracker March 2011

Aspirations to buy, but bleak labour market outlook likely to keep demand for property purchase weak

The March 2011 BSA Property Tracker survey suggests that demand for property purchase may remain weak, but that people still aspire to ultimately own their own home.

The Property Tracker shows that 41% of people think that it would currently be a good time to buy, down from 43% in December. However, 29% disagree that it would be good to buy now, up from 26% in the last survey.

The proportion saying that a lack of job security was a barrier to purchasing property increased to 57% in March from 53% in December and 58% of respondents also cited raising a deposit as a barrier to purchase.

Just 5% of respondents did not think that people should aspire to own their own home. The primary reasons that people cited for aiming to become homeowners were because they would take pride in their property, that they could make a place their own, because it provides stability and security, and that it increases their wealth over time.

Commenting on the March Property Tracker survey, Paul Broadhead, Head of Mortgage Policy at the BSA, said

“The Property Tracker indicates that people continue to aspire to own their own home, despite an increased level of concern about job security. Home ownership means they can make the improvements to their property that they want, it gives them stability, and they also believe they may see their wealth increase over time. These motives appear to be intertwined, showing the reasons for home ownership are complex.

“However, people believe that substantial barriers to buying property persist. These include raising a deposit, a lack of job security, and difficulty obtaining a large enough mortgage. Against the uncertain economic outlook, job insecurity increased slightly as a barrier in the latest results.

“These findings support what I proposed at the Government’s First Time Buyer summit last month: there is no single easy solution to get the housing market moving again. The barriers preventing existing homeowners from moving need to be addressed just as much as impediments to new buyers.”

~Ends~

Notes to Editor

1. A full copy of the report is attached to this email and can be found on the BSA website via the link below – www.bsa.org.uk

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 March 2011 was 2,026 adults. Fieldwork was undertaken between 4-7 March 2011. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

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

Join us at the BSA Annual Conference in Birmingham, 4 & 5 May 2011.
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