Housing market sentiment rebounds but fears around job security rise

Consumer views on the housing market rebounded strongly in the BSA’s quarterly consumer survey, Property Tracker

Consumer views on the housing market rebounded strongly in the BSA’s quarterly consumer survey, Property Tracker.  However, longer term fears about job security may dampen future activity as it was seen as a barrier by 68% of respondents, topping the list of barriers to home ownership for the second quarter running*.  This time last year job security was cited as a barrier by 37% and in March - before lockdown – by just 35%. The survey also highlighted a number of marked regional differences of view about the housing market.

Key results:

  • There has been a marked uplift in the number of people who say that now is a good time to buy a property - 37% in September compared to 25% in June.  Across the regions views are most positive in the East of England (48%) and least positive in Yorkshire and Humberside (31%).
  • Across the regions those in the West Midlands and the South East a greater proportion saw job security as a barrier to property purchase with 76% and 73% respectively selecting it, compared to 62% in London and 63% in the North West. 
  • In many areas house prices have been boosted by pent-up demand after lock-down, coupled with the stamp duty holiday.  Looking ahead 12 months, 32% of people still believe prices will rise in the coming year, clearly going beyond the March deadline for the stamp duty holiday.  Those in Yorkshire and Humberside and Wales were most sure at 40% and 39% respectively whilst just 23% of those surveyed in London and 25% in the North East thought the same. 
  • When asked if they were more or less likely to move home because of the Pandemic, 4% reported that they had already moved and 10% stated that they were more likely to do so. Looked at regionally, people in London (15%) and in Scotland (14%) were the most likely to move home because of Covid-19 and people in Yorkshire and Humberside (4%) and Wales, West Midlands and the South West all at 7% were the least likely to make a move.

Commenting, Paul Broadhead, Head of Mortgages and Housing at the BSA said:

“The boost in activity and transaction volumes in the housing market since full lock-down was eased is to be welcomed.  Many people who were part-way through a move in March have been able to complete and there is no doubt that the virus has had an effect on people’s attitudes to home, and what in an ideal world they want and need from theirs.  As our survey shows some have already taken action.

“Mortgage application volumes are strong, but it seems that completions are taking a little longer then they would have done pre-Covid.  Strong application volumes, coupled with the need to focus on those who took a mortgage payment deferral is causing some capacity challenges, which is one of the reasons why the longevity of some products is so short.

“Looking ahead, the volume of consumers going from a payment deferral back to normal payments is encouraging.  However, we are not in normal times and forecasts of rising unemployment, and the imminent end of Government support schemes mean that lenders are rightly focused on risk and affordability.  Whilst very definitely open for business, responsible lending is the watchword as we navigate the next 6-12 months.”   

Press contacts:

Hilary McVitty, Head of External Affairs, Tel: 07741 984042, hilary.mcvitty@bsa.org.uk

Katie Wise, External Affairs Officer, Tel: 0207 520 5904, Katie.wise@bsa.org.uk

Notes to Editors:

  1. Paul Broadhead, Head of Mortgage and Housing Policy at the BSA is available for interview.  Please contact press contacts to arrange.
  2. All figures, unless otherwise stated, are from YouGov Plc:
  • The 2020 August/September Property Tracker total sample size was 2091 adults. Fieldwork was undertaken between 28 August – 1 September 2020. 
  • The 2020 March Property Tracker total sample size was 2053 adults. Fieldwork was undertaken between 28 February - 2 March 2020. 
  • The 2019 August/September Property Tracker total sample size was 2090 adults. Fieldwork was undertaken between 30 August - 2 September 2019. 
  • All surveys were carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)
  1. *Respondents are asked “Which of the following do you think are most likely to stop someone from buying a residential property at the moment?” See the full report here for the list of potential barriers. Respondents can select up to three of these.
  2. The Building Societies Association (BSA) represents all 43 UK building societies, as well as 6 credit unions. Building societies have total assets of nearly £430 billion and, together with their subsidiaries, hold residential mortgages over £335 billion, 23% of the total outstanding in the UK. They hold over £295 billion of retail deposits, accounting for 18% of all such deposits in the UK. Building societies account for 39% of all cash ISA balances. They employ approximately 42,500 full and part-time staff and operate through approximately 1,470 branches.
  3. The full report and data tables for the standard questions can be downloaded here