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Press release
OVER A THIRD THINK IT IS A GOOD TIME TO BUY PROPERTY
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Contact: Neil Johnson Date: 18 Sep 2008 |
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34% of the public think now is a good time to buy a residential property in the UK according to the latest BSA Property Tracker Survey. It suggests that buyers may be starting to think about returning to the market since just 27% of respondents thought so in June’s survey.
However, despite the optimism of some people, almost half of respondents (48%) disagreed that it was a good time to purchase property. To this group, the prospect of future property price falls was the most significant barrier to buying, and was chosen by 64% of these people.
Overall, the BSA’s Property Tracker survey reveals that the main barriers to buying property at present were considered to be access to a large enough mortgage or access to a mortgage at all (selected by 57% of respondents), affording the monthly mortgage repayments (54%), concern about future property price falls (51%) and raising a deposit (42%).
Lack of job security, while still one the more minor barriers to house purchase, had increased in importance to represent a concern for 28% of respondents, up from 12% in June, indicating how rapidly confidence in the economic outlook can deteriorate.
Potential homebuyers are not more likely to buy as a result of the Government’s recent measures aimed at supporting the housing market. Stamp Duty costs were considered a barrier by just 11% of the public, which possibly explains why 90% of potential homebuyers said the Government’s measures would not encourage them to buy in the next year.
Commenting on these findings, Adrian Coles, Director General of the BSA said:-
“With property prices falling for several months now, a number of potential buyers may believe the bottom of the market has been reached, and so are seeking to pick up a bargain before prices rise again.
“The effect of wider economic factors are evident in preventing the majority from seeking to buy though, with the tightening of lending criteria across all lenders, the squeeze on household finances from fuel and energy inflation, and the prospect of further falls in house prices all being viewed as major barriers to property purchase.”
Property Tracker survey results:-
The questions asked, and the responses, follow along with the results of the June survey.
To what extent do you agree or disagree with the following statement – “Now is a good time to buy a residential property in the UK”?
| Sept 08 | June 08 | |
| Agree strongly | 7% | 4% |
| Tend to agree | 26% | 23% |
| Neither agree nor disagree | 15% | 18% |
| Tend to disagree | 26% | 33% |
| Disagree strongly | 22% | 18% |
| Don't know | 3% | 3% |
Which of the following do you think are most likely to stop someone from buying a residential property at the moment?
| Sept 08 | June 08 | |
| Access to a large enough mortgage/ mortgage at all | 57% | 49% |
| Affordability of monthly mortgage repayments | 54% | 70% |
| Concern about future falls in property prices | 51% | 46% |
| Raising a deposit | 42% | 47% |
| Lack of job security | 28% | 12% |
| Legal, valuation and other “official” costs | 11% | 12% |
| Stamp Duty costs | 11% | 16% |
| Complexity of the property buying process | 6% | 4% |
| Finding the right property | 4% | 4% |
Respondents could choose up to three factors, so percentages do not sum up to 100%.
An extra question in this survey asked:
The Government recently announced a number of measures to support the housing market, including increasing the amount that a property has to cost before stamp duty is payable on the purchase. Will these measures announced by the Government make you more likely to buy a property in the next twelve months?
| Sept 08 | |
| Yes, they will | 4% |
| No, they will not | 37% |
| Not interested in buying property in the next 12 months | 54% |
| Don't know | 4% |
This means that of those interested in buying, 90% don’t believe that the Government’s measures will make them more likely to purchase a property.
BSA’s Property Price Tracker survey also asked respondents how they expect property prices to change in the next twelve months. The average prediction was an 8.4% fall compared to a 7.1% decline predicted by the survey in June3.
~ Ends ~
CONTACT: Neil Johnson
DIRECT LINE: 020 7520 5903
NIGHT/WEEKEND: 07908 764549
EMAIL: neil.johnson@bsa.org.uk
The BSA Property Tracker Survey takes place quarterly and provides an understanding of how the British public view the housing market.
All the figures are from YouGov plc. Total sample size was 2,092 adults. Fieldwork was undertaken between 5-9 September 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
The averages quoted are median figures based on additional analysis of YouGov survey data carried out by the BSA.
The results of the next Property Tracker and Property Price Tracker surveys will be published on December 17th 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.
Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk.
The full results of the survey are in the attached spreadsheet.
