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Help to Buy boosts homebuyer confidence

Help to Buy boosts homebuyer confidence

Category: Mortgages

Updated: 04/10/2013
First Published: 04/10/2013

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 It is now over 6 months old so the content may be out of date.

New figures show that Brits are becoming increasingly upbeat about the property market, and all signs point to the positive impact the Help to Buy scheme has had on boosting confidence levels.

Encouraging news

According to a Santander survey, 10% of consumers expect to successfully buy a new home in the next 12 months, up from 8% in January 2012, while a third intend to use the Help to Buy scheme to reach their goal.

Fifty-seven percent of those looking to buy are more positive about their prospects of being able to do so while a third will be first time buyers, and young people seem to be leading the way with 18% of 18-34 year olds saying they're likely to buy in the next year.

As is common, there are regional variations – Londoners are most confident about their chances of buying a new home while those in Wales are significantly less so – and the biggest obstacle to home purchase is still the difficulty in securing a deposit, particularly for younger buyers with a third of 18-34 year olds citing this as a reason for not purchasing.

But, this is a significant drop from the 42% of 18-34 year olds who claimed finding money for a deposit was an obstacle in 2012.

Positive impact

This all indicates that the Help to Buy scheme is having a positive impact on homebuyers' confidence levels and the housing market as a whole.

A lot of first time buyers are entering the market and it's hoped the extension of the scheme will encourage existing homeowners to move up the ladder too, and despite industry criticism it looks like it'll continue to fuel the market for the year ahead.

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