In Focus Consumer Credit
A time of caution for house buyers
Housing market sentiment falls sharply amidst continuing Brexit uncertainty
Paul Broadhead Head of mortgages & housing, the Building Societies Association
Released last month, our quarterly Property Tracker survey shows that: l Housing-market sentiment fell to its second lowest level since the European Union (EU) referendum. l A growing number of people across the UK expect house prices to fall.
Confidence The Property Tracker survey questions a minimum of 2,000 adults across Great Britain every three months. For the past 10 years, the same question
about whether now is a good time to buy a home has been asked. The resulting index provides a snapshot of consumer confidence in the housing market. At its peak in December 2009 the index
stood at plus 42. In March 2017 before the EU Referendum and the snap general election it was plus 5. Since then it has been in negative territory,
with more consumers disagreeing with the statement that now is a good time to buy a property than those who agreed. At its lowest point, in December 2018,
the index stood at minus 14. In September 2019 the figure fell to minus 12 from minus 5 in June 2019. This indicates that at least discretionary home purchases may be on hold.
House prices and barriers to home ownership A third of people across Great Britain (33%) expect house prices to fall over the next 12 months, up from 24% in June 2019. Just 23% of the population believe that house prices will rise.
22 There are regional variations, with 27%
in the North East of England expecting prices to fall. This compares to 40% of people in the East of England – well above the national average of 33%. Raising a deposit has been the biggest
barrier to home ownership since the Property Tracker survey began over a decade ago. Although these results show that, even if it remains the biggest barrier at 60%, it is down from 64% in June – and is now the lowest it has been since December 2015.
Unsurprising With the level of political uncertainty the country is experiencing, it is unsurprising consumer confidence in the housing market, amongst other things has taken a knock. In the coming weeks and months, as we
find out what shape Brexit will take, we are hopeful that confidence and stability will begin to return. We will be monitoring closely the barriers
to homeownership. It is positive that raising a deposit has become a slightly lesser concern to would-be homeowners, but with the Help to Buy ISA scheme drawing to a close from November, this could easily change. Some are turning to a Lifetime ISA (LISA) which follows a similar structure to the Help to Buy ISA. Currently three of the four cash LISA providers are building societies. Aspiring homeowners are encouraged to
speak to their local building society to find out their best options, and how to make the most of their savings when raising a deposit for that all-important property purchase. CCR
www.CCRMagazine.com
Raising a deposit has been the biggest barrier to home ownership since the Property Tracker survey began over a decade ago. Although these results show that, even if it remains the biggest barrier at 60%, it is down from 64% in June – and is now the lowest it has been since December 2015
October 2019
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52