Confidence in housing market edges up

Consumer confidence in the housing market increased slightly in June, the latest Building Societies Association Property Tracker shows.

The quarterly survey reveals 21% of people do not think now is a good time to buy, down from 29% in March, while 41% believe now is a good time to buy, the same proportion as in March.

And while a lack of job security remains a major barrier to prospective buyers, it was chosen as an impediment to home buying by 48% of respondents in June, down from 57% in March.

The proportion of people concerned about future falls in property prices also decreased, down from 24% in March to 19% in June.

However, 62% of people said raising a big enough deposit was a problem, the highest proportion since the Property Tracker began.

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Paul Broadhead, head of mortgage policy at the BSA, says: “There appears to be a little less negativity in consumers’ opinions on the housing market, but it remains to be seen whether this is just a blip or the start of a trend.

“People are a slightly less nervous about the outlook for the jobs market, and are less inclined to think that house prices are going to fall. For the first time since September last year a greater proportion of respondents think that house prices will rise rather than fall in the following 12 months.”

He adds it is unsurprising that more people think raising a deposit is a barrier to buying property considering the ongoing squeeze on household finances, but this obstacle could reduce in the coming months as a greater number of high LTV products come onto the market.