Friday, 17 June 2011

Property Tracker shows slight positive outlook for Housing market

The June 2011 Building Societies Association (BSA) Property Tracker survey indicates that consumers are slightly less negative about the outlook for the housing market.
The proportion that did not think that it is currently a good time to buy dropped to 21% from 29% in March. 41% think it is a good time to buy, the same proportion as in March.

Though it remains one of the main factors holding back prospective buyers, the proportion selecting a lack of job security fell by 9 percentage points compared to the previous survey, being chosen by 48% of respondents in June. And the proportion concerned about future falls in property prices reduced by 5 percentage points to 19%. Meanwhile, raising a deposit attracted the highest proportion this barrier has achieved since the Property Tracker began, being selected by 62% of respondents. Obtaining a sufficiently large mortgage was also a significant barrier, with 53% of respondents saying this was an impediment.
Paul Broadhead, Head of Mortgage Policy at the BSA, said:
“There appears to be a little less negativity in consumers’ opinions on the housing market, but it remains to be seen whether this is just a blip or the start of a trend. People are a slightly less nervous about the outlook for the jobs market, and are less inclined to think that house prices are going to fall. For the first time since September last year a greater proportion of respondents think that house prices will rise rather than fall in the following 12 months.
“And more people think that raising a deposit is a barrier to buying property, which though unsurprising when considered against the ongoing squeeze on household finances could indicate that more people are looking at getting into the market. This barrier to potential buyers might reduce in the months ahead as a greater number of higher LTV products come onto the market."

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