• Optimism in the housing marketing returns
• Stamp duty holiday and mortgage guarantee scheme boost confidence
• Concerns about job security show north / south divide

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.

Nearly half the people in the North East (45%) think now is a good time to buy a property, compared to 27% in December. This is considerably more than the people across the border in Scotland where just 29% think now is a good time to buy, and higher than the average of 37% in Britain.

There is also growing expectation that house prices will rise, with over a third of people (37%) in the region anticipating an increase over the next 12 months, a big jump from three months ago when just 24% in the North East 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, 62% of people in the North East (Dec 2020 - 65%) see this as a barrier, 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 North East region remain concerned about job security and are feeling a little less optimistic about the future.”

Press contacts:

Tanya Jackson, External Affairs, Tel: 07881 501098 tanya.jackson@bsa.org.uk

Katie Wise, External Affairs Officer, Tel: 020 7520 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 Katie Wise to arrange.
2. All figures, unless otherwise stated, are from YouGov Plc. 
3. In March, the total sample size was 2158 adults, 102 from the North East. 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+).
4. In December the total sample size was 2,026 adults, , 88 from the North East. Fieldwork was undertaken between 27th November – 30th November 2020. Surveys are carried out online. Figures have been weighted and are representative of all GB adults (aged 18+).
5. 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.
6. The full report can be downloaded here