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Buyers impatient to enter the property market

Buyers impatient to enter the property market

Category: Mortgages

Updated: 15/12/2010
First Published: 15/12/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The majority of people believe some time within the next year would be the best time to enter the housing market, but will not do so because of job fears and a lack of available mortgages, new research has revealed.

The latest survey from the Building Societies Association (BSA) found that considerable uncertainty remains in the UK housing market.

Most people said they would not wait long to enter the market, if they were able to do so, with 59% wanting to buy immediately or within the next year, given sufficient resources.

Views over the immediate outlook for the housing market, however, were mixed, with 43% agreeing it was currently a good time to buy property, 26% disagreeing, and 24% sitting on the fence.

House prices are broadly predicted to be flat next year, although a significant number of people think property is overvalued at present.

Of those who were surveyed, 38% said they believed that properties in their area were over-priced, with 25% claiming that prices were over-valued by 10% or more.

"Although the housing market remains uncertain, the public does not expect house prices to fall as dramatically as they did two years ago," said Paul Broadhead, head of mortgage policy at the BSA.

"As such, many expect that the best time to enter the market will be in the next year or so."

However, while many people would like to make a move for property sometime in 2011, a number of familiar obstacles remain in their way.

Concerns over the safety of jobs, finding an adequate deposit, and securing a mortgage were all cited as reasons for not being able to buy a house at this moment in time.

"Barriers remain that might prevent potential buyers from acting on these perceived opportunities," added Mr Broadhead.

"Worries persist about job security, the ability to raise a deposit, and obtaining a mortgage from lenders. These factors might inhibit demand for house purchase from growing as strongly as it might."

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