The latest Property Tracker survey from the Building Societies Association, reveals consumer confidence in the housing market remains strong in Scotland, despite over half the respondents citing lack of job security as a barrier to buying a property.

There’s a growing expectation across the UK that house prices will continue rise, with almost half of people in Scotland agreeing (48%), compared to 50% in England and 45% in Wales.

A third of people in Scotland (33%) think now is a good time to buy a property, compared to 30% in England and 37% in Wales.

For the first time in nine months, raising a deposit returns as the biggest barrier to buying a property in Scotland (57%). During the pandemic lack of job security became the greatest concern, but whilst this has steadily declined, it remains a significant concern for those in the devolved nations. Over half the respondents in Scotland (52%) and Wales (51%) cite lack of job security as a barrier, compared to just 44% in England, showing that there are still a considerable number of people who do not feel confident about their long-term employment prospects.

With this in mind the BSA is calling on the government to urgently reduce the wait time for the DWP Support for Mortgage Interest (SMI) loan, so that struggling homeowners can get timely access to this extra safety net.

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

“These latest Property Tracker results show how the housing market recovery following the impacts of the Covid-19 pandemic differs across the UK.

“There’s no doubt that the government support measures introduced over the last 12 months, such as the Stamp Duty holiday, have been key drivers of the confidence we see. It does however appear that the market will remain buoyant as these incentives come to an end.

“Whilst there are a number of encouraging signs demonstrating confidence in the housing market, it’s important to note that over half the respondents in Scotland have concerns around their job security. It’s clear that there are many people for whom the pandemic continues to have a negative financial impact and it’s important, both for lenders and government, to ensure that appropriate safety nets are available to give households the support they need, when they need it”

Ends

Press contacts:

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

Katie Wise, External Affairs Officer, Tel: 020 7520 5904, Katie.wise@bsa.org.uk

Notes to Editors:

1. More information on the urgent changes needed to the Support for Mortgage Interest scheme can be found here
2. Paul Broadhead, Head of Mortgage and Housing Policy at the BSA is available for interview.  Please contact Hilary McVitty or Katie Wise to arrange.
3. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2006 adults, of which 183 were from Scotland. Fieldwork was undertaken between 1st - 2nd June 2021.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
4. The Building Societies Association (BSA) represents all 43 UK building societies, as well as 6 credit unions. Building societies have total assets of over £435 billion and, together with their subsidiaries, hold residential mortgages over £338 billion, 23% of the total outstanding in the UK. They hold over £297 billion of retail deposits, accounting for 17% of all such deposits in the UK. Building societies account for 37% of all cash ISA balances. They employ approximately 42,500 full and part-time staff and operate through approximately 1,380 branches.
5. The full Property Tracker Report can be downloaded here 
6. Those likely to buy are existing home owners as well as people who say that they are looking to buy their first home, or return to the market having previously owned, and who also say they are likely to move in the next six months.