Media and Public Affairs
Property prices will rise 3.0% in 2010 according to the December BSA Property Tracker survey of over 2,000 people.
The December forecast compares to a 1.6% rise in prices in September and an 8.6% decrease forecast in December last year which demonstrates confidence is slowly returning to the property market.
However, two big barriers to property purchase remain. With unemployment continuing to rise, the consequent lack of job security was identified as the biggest barrier to buying a property, with 60% of respondents identifying it as a barrier. Raising a deposit was also a problem for prospective buyers, with 56% identifying it as a barrier.
Commenting on the findings, Paul Broadhead, Head of Mortgage Policy at the BSA said:-
“The recent stabilisation of house prices over the latter part of the year is clearly reducing pessimism in the housing market. However, a healthy housing market is heavily dependent on stability in the labour market. And with unemployment likely to rise further in 2010 price growth will be moderate at best in 2010.”
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The December forecast compares to a 1.6% rise in prices in September and an 8.6% decrease forecast in December last year which demonstrates confidence is slowly returning to the property market.
However, two big barriers to property purchase remain. With unemployment continuing to rise, the consequent lack of job security was identified as the biggest barrier to buying a property, with 60% of respondents identifying it as a barrier. Raising a deposit was also a problem for prospective buyers, with 56% identifying it as a barrier.
Commenting on the findings, Paul Broadhead, Head of Mortgage Policy at the BSA said:-
“The recent stabilisation of house prices over the latter part of the year is clearly reducing pessimism in the housing market. However, a healthy housing market is heavily dependent on stability in the labour market. And with unemployment likely to rise further in 2010 price growth will be moderate at best in 2010.”
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Notes
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The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK, including all 52 building societies. Building societies have total assets of £370 billion and, together with their subsidiaries, hold residential mortgages of almost £240 billion, approximately 20% of the total outstanding in the UK.
Photographs of Paul Broadhead are available from the BSA press office, from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
The full results of the property tracker survey are attached.
The average house price figure prediction 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 2,027 adults. Fieldwork was undertaken between 4th-7th December 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 17 March 2010.
