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Although 51% of people don’t think that now is a good time to buy property, the surprising finding of the first quarterly Property Tracker survey by the Building Societies Association (BSA) is that 27% of people agreed to some extent that now is a good time to buy property in the UK.
This clearly shows the sharp division within the population, and despite the doom and gloom of many commentators, it shows that there remains a cadre of people out there willing to buy.
The survey will also track which factors are currently considered to be the greatest barriers to house purchase.
The most significant impediment to property purchase was considered to be affording the monthly mortgage payment, chosen by 70% of respondents.
Three other factors were seen as important barriers, but to a lesser extent than the monthly mortgage payment. The other barriers were getting access to a large enough mortgage or a mortgage at all (49% of respondents), raising a deposit (47%), and concerns about future falls in property prices (46%). However, just 12% considered lack of job security a barrier to buying a property at the moment.
Unsurprisingly, those that thought that it was not a good time to buy property at the moment tended to be more concerned about future falls in prices. Of those that disagreed strongly or tended to disagree that now was a good time to buy property, 59% cited the possibility of future falls in prices as a barrier to purchasing at the moment. Just 30% of those that agreed to some extent that now was a good time to buy thought this risk was a barrier.
Commenting on the findings, Adrian Coles, Director General of the BSA said:-
“People often view property buyers as a single group. However, the Property Tracker survey shows that is not the case, and while most people don’t believe now is a good time to buy, more than one in four people believe the opposite.
“The finding that monthly mortgage payments are currently seen as the main barrier to house purchase demonstrates the extent to which household finances are being stretched, as well as a reflection of the increased price of risk now incorporated into mortgage rates.
“A significant proportion of respondents said that expected future falls in property prices are a reason not to buy. However, the fact that a lack of job security was relatively unimportant in preventing property purchase suggests that concerns about the wider economy are not currently undermining the housing market.
”With this new quarterly survey, the BSA should be able to track how the perceived barriers to property purchase change over coming quarters.”
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CONTACT: Neil Johnson
DIRECT LINE: 020 7520 5903
EMAIL: neil.johnson@bsa.org.uk
NIGHT/WEEKENDS: 07908 764 549
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The Property Tracker survey will be repeated each quarter to provide an understanding of how the British public view the housing market. The survey was undertaken by YouGov plc on behalf of the BSA.
All figures are from YouGov plc. Total sample size was 1,987 adults. Fieldwork was undertaken between 5-9 June 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
The next Property Tracker survey will be published on 17 September 2008.
The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 38% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
Unlike many competing organisations, building societies draw most of their funding from retail sources rather than the wholesale markets. Following record savings receipts societies are able to continue to lend at a time when many lenders are restricting their activities or pulling out of the market all together. Every building society issued new mortgages in April.
Photographs of Adrian Coles are available from the BSA press office, from the Association’s website at www.bsa.org.uk or from Headline Money www.headlinemoney.co.uk
