Optimism has started to return to the UK’s housing market, according to a new survey. The latest Property Tracker report had indicated that more than one-third of people now believe this is a good time to buy.
Paul Broadhead, head of Mortgage Policy at The Building Societies Association said: “Optimism in the housing market is back after a long, slow winter. Conditions in the mortgage market and the wider economy are improving and this confidence is driving consumer sentiment, especially those looking to purchase a home”.
Late 2014 saw a dip in transaction figures; this coincided with the introduction of new mortgage regulations and an announcement by the Financial Policy Committee of actions to limit lending in the housing market. However, things finally seem to be picking back up.
According to the four-page report, despite average wages increasing and high levels of employment, raising a deposit is the greatest barrier to buying a home. In fact, 59% of those surveyed say that this is the biggest hurdle they have to overcome.
Further commenting on the results, Paul Broadhead added: “A more sustainable cure for the affordability challenge is increased housebuilding. Earlier this month we asked for a revolution in the provision of new housing in our discussion document Housing at the Heart of Government. Like millions of others, we now await the outcome of the General Election to discover whether housing will sit at the top of the political agenda as promised.”