BSA blog

BSA blog

News and views on topical issues from BSA staff and guests.

Sign up to receive blogs

By subscribing you consent to us sending you blogs

Blog

Optimism in the housing market returns

The latest Property Tracker survey from the Building Societies Association, reveals a surge in consumer confidence in the housing market following the Budget earlier this month.

  • Over a third of people (37%) agree now is a good time to buy a property in the UK, compared to 27% in December, with just 17% disagreeing that now is a good time to buy, down from 23% in December.
  • There is growing expectation that house prices will rise, with 39% of people anticipating an increase over the next 12 months, a big jump from 25% three months ago.
  • 40% or people said the mortgage guarantee scheme, announced in the Budget, has made them feel more positive about buying a property in the UK.
  • The extension to the stamp duty holiday has led to 40% of people feeling more positive about buying a property, with the furlough extension building confidence in buying a property for a third of people (33%).

Perceived barriers to buying a property

In the midst of the Covid pandemic, lack of job security has been perceived as the biggest barrier to buying property and it remains so at 59%, however it is steadily declining as a reason for not purchasing (Dec 2020 - 65%; Sept 2020 - 68%).

Regional Variations

Increased optimism in the housing market can be seen, however the level of confidence differs by region:

  • In Wales, almost half (48%) of the people are expecting house prices to rise in the next 12 months, compared to a third (33%) in London and the East Midlands.
  • Almost half (45%) the people In the North East think now is a good time to buy a property, with less than a third (29%) agreeing in Scotland.
  • Lack of job security as a barrier to buying a property at 59% belies a north / south divide, with 65% in Yorkshire and Humberside citing this as a barrier, compared to just half (50%) of those in London.

The full report can be downloaded here

Notes

All figures, unless otherwise stated, are from YouGov Plc.

  • March research - Total sample size was 2158 adults. Fieldwork was undertaken between 8th - 9th March 2021.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
  • November research - Total sample size was 2026 adults. Fieldwork was undertaken between 27th - 30th November 2020.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

Posted by Katie Wise on 25 March 2021