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 in Yorkshire & Humberside (37%) think now is a good time to buy a residential property, compared to 28% in December.
There is also growing expectation that house prices will rise, with almost four in 10 people (39%) in the region anticipating an increase over the next 12 months, a big jump from three months ago when just 22% in Yorkshire & the Humberside thought house prices would increase during 2021.
It’s clear that the Chancellor’s Budget announcements earlier this month have boosted confidence in the housing market. 59% of first-time buyers said the mortgage guarantee scheme, which requires just a 5% deposit, has made them feel more positive about buying a property. The extension to the stamp duty holiday has also led to 40% of people feeling more positive about buying a property.
In the midst of the Covid-19 pandemic, lack of job security has been perceived as the biggest barrier to buying property. Whilst the latest figures show that this is steadily declining, 65% of people in Yorkshire & Humberside (Dec 2020 - 68%) see this as a barrier to property purchase, compared to just 50% in London (Dec 2020 - 61%), demonstrating a clear north / south divide in how people feel about future employment prospects.
Commenting, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:
“It’s great to see public confidence in the housing market returning. The vaccination rollout and the publication of the Government roadmap for easing Covid-19 restrictions are likely to have impacted this, but it’s also clear that some measures announced in the Budget, including the government-backed mortgage guarantee for those with small deposits and the stamp duty holiday extension, have been significant contributors to the growing optimism.
“The extension to the furlough scheme has also stimulated confidence overall, however we should be mindful that the full impact the Covid-19 pandemic will have on the economy is still unclear and there’s strong evidence that the effect on household finances varies considerably, with those on lower incomes most negatively impacted.
“With the latest forecast from the Office for Budget Responsibility suggesting the unemployment rate will reach 6.5% this year and many people still benefiting from mortgage payment deferrals, it’s not surprising that almost two thirds of people in the Yorkshire & Humberside region remain concerned about job security and are feeling a little less optimistic about the future.”
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