The BSA’s latest, June 2010, quarterly Property Tracker survey shows that just 45% of consumers surveyed think that now is a good time to buy property. This compares with a figure of 49% of those surveyed and asked the same question in March 2010.
Over half of respondents said lack of job security and a deposit remained the greatest barriers to property purchase, While concerns over future falls in property prices was highlighted as a barrier by 27 per cent of respondents in September compared to 19 per cent in June.
The BSA believes that low consumer confidence in the market is reflective of low levels of confidence in the recovery of the wider economy and nervousness about the new coalition’s austerity measures.
Paul Broadhead, head of mortgage policy at the BSA, says: “It is clear that concerns about future falls in property prices are having a significant impact on consumer confidence. Whilst the survey indicates that consumers perceive access to a mortgage as less of an issue than in March, job security remains a barrier to house purchase and is likely to remain so until there is greater confidence in the strength of the economy. He added; “Whilst credit conditions are perceived to have eased slightly, the BSA is urging the FSA to move cautiously on the final shape and implementation of the proposed Mortgage Market Review. As the proposals currently stand they could seriously limit access to mortgage finance for many credit worthy borrowers and further dampen hopes of a housing market resurgence.”