- 19
- Jun
Despite concerns about future falls in the housing market, many consumers are still keen to invest in property, a new study has found.
Conducted by the Building Societies Association (BSA), the report identified a contingent of UK consumers who now view this as a favourable time to purchase a house or flat. The group reported that while a slim majority (51 per cent) of people expressed concerns about the stability of the housing market, more than a quarter (27 per cent) said they would be happy to buy property in today’s economic climate. According to the organisation, this finding demonstrates a sharp discord between the average consumer and the “doom and gloom” forecasts of financial experts.
Analysing the inhibiting factors in house purchases, the survey found that meeting monthly mortgage repayments was seen as the biggest problem, with 70 per cent of people stating that they would find it difficult to do so. Nearly half (49 per cent) of all respondents also said they would find obtaining a large enough mortgage loan to purchase property difficult. Raising the money for a deposit was also a worry for 47 per cent of those questioned. For those who are looking of an effective way of getting financial backing, taking out a secured loan may be of interest. In choosing a low rate loan of this type, consumers may find they are able to move quickly when putting in an offer on their dream home.
Indeed, while finding assistance may be a problem for some consumers, few are troubled by the security of their financial position when it comes to house purchasing. Just 12 per cent of people said they did not feel they were in a safe enough job to make property investment plausible.
Meanwhile, for those who took a less positive outlook on the prospects for house purchasing, the majority (59 per cent) said concerns about future falls and the resultant risk of negative equity were the principal factors in discouraging them from entering the market.
Commenting on the findings, Adrian Coles, director general of the BSA, said: “People often view property buyers as a single group. However, the Property Tracker survey shows that is not the case, and while most people don’t believe now is a good time to buy, more than one in four people believe the opposite. The finding that monthly mortgage payments are currently seen as the main barrier to house purchase demonstrates the extent to which household finances are being stretched, as well as a reflection of the increased price of risk now incorporated into mortgage rates.”
He concluded by stating that as the quarterly survey continues, the BSA will be able to quantitatively track the way that consumer perceptions of the health of the UK property market change over time.
According to the most recent monthly statistics from the Bank of England, the number of loan approvals for house purchases fell for the 12th consecutive month in April. In total, 7.3 billion pounds worth of loans were granted during the period.
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