Fundamental housing market issues surpass Brexit: BSA

Removing Brexit uncertainty will not resolve the current housing market issues, according to the Building Societies Association.

The body conducted a survey in which 34 per cent of respondents, who believe now is not a good time to buy, said they would change their mind after a correction in house prices.

In contrast, 27 per cent said they would change their mind if the UK reached an agreement with the EU, and 11 per cent said a “no deal” scenario would make them more positive.

The data shows that 31 per cent of respondents believe house prices will rise, whereas 24 per cent believe they will fall.

Furthermore, raising a deposit has been singled out as the largest barrier to home ownership at 64 per cent.

BSA head of mortgages and housing policy Paul Broadhead says: “It is no surprise that the UK views the housing market in a negative light. We are in the midst of a housing crisis and the political landscape is in undoubtable turmoil.

“Naturally, these combined forces are unsettling homeowners and making them less likely to want to move. Fewer homes on the market means intensified competition, which consequentially push house prices up.

“Unfortunately, this has a knock-on effect on first-time buyers, who are already struggling to pull together a deposit.

“This cocktail of existing homeowners staying put, and would-be FTBs failing to get on the ladder at all, means we risk stagnating the housing market further.”

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