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Home buyers predict price growth

Home buyers predict price growth

Category: Mortgages

Updated: 17/12/2009
First Published: 17/12/2009

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 It is now over 6 months old so the content may be out of date.

Optimism amongst potential property buyers continues to grow, although concerns over job security and obtaining a mortgage still persist, the latest research from the Building Societies Association (BSA) has revealed.

Around six in ten (58%) people surveyed thought now was a good time to buy residential property in the UK, up from just 46% at the same time last year.

Meanwhile, two thirds of those questioned said they expected house prices to rise over the next 12 months, with the average increase predicted being 3%.

In September, a rise of 1.6% was being anticipated, while a year ago, respondents felt prices would fall by 8.6%.

However, while confidence continues to grow, barriers to buying a property still remain.

The greatest perceived stumbling block was a lack of job security, followed by difficulties in raising a suitably sized deposit.

Gathering a greater proportion of the vote than a year ago were problems in obtaining a sufficiently large mortgage, or even securing a mortgage at all.

Concern over being able to afford mortgage repayments also played on people's minds.

"The recent stabilisation of house prices over the latter part of the year is clearly reducing pessimism in the housing market," said Paul Broadhead, head of mortgage policy at the BSA.

"However, a healthy housing market is heavily dependent on stability in the labour market. And with unemployment likely to rise further in 2010, price growth will be moderate at best in 2010."

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