UK consumers don’t think property market is overheating

The Building Societies Association’s Property Tracker report shows that just two per cent of consumers currently fear the property market is overheating.

Some 20 per cent of survey respondents said they would use the word ‘recovering’ to describe the housing market while another fifth believe the market is ‘stable’.

Just one per cent of those surveyed described the market as ‘crashing’.

Almost two-thirds of consumers believe house prices will continue to increase over the coming year, which is the highest percentage since the Property Tracker survey began in 2008.

Consumers also report that barriers to the market such as restricted access to mortgage financing are declining. Just 39 per cent of respondents believe mortgage finance remains a barrier, compared with 46 per cent three months ago and 60 per cent in 2011.

BSA director-general Adrian Coles says: “Signs of market recovery have been much discussed over the summer and these results confirm an improved outlook.

“At the moment, serntiment across the UK, particularly in markets outside London, is increasingly positive but still cautious. The hope is that the mix of consumer-sentiment, additional house-building, mortgage availability and government intervention will lead to an improved but stable market.”