The government’s Help to Buy scheme is a major cause of increased confidence, with a third (33%) of those who think they will purchase in the next 12 months saying they are likely to get assistance from the scheme.
The findings reveal that younger people are the most likely to buy, with 18% of those aged 18-34 saying they are likely to purchase a new home. This is compared to 9% of 35-54 year-olds and 5% of those aged 55 or over.
Overall 57% of those planning to buy a home are more positive about their prospects of being able to do so than a year ago, compared to only 8% who are more negative.
By region, Londoners are the most confident about their chances of purchasing a home in the next 12 months, with one in five (20%) believing it is likely they will do so. This is up by just under 50% from the level of confidence at the start of 2012 (13%). At the other end of the scale, only 2% of those in Wales think they are likely to buy a new property in the next 12 months.
Of those who are likely to buy a new home this year, a third (33%) will be first time buyers, while just under a third (32%) are already homeowners and intend to move. A further 13% will be buying an additional property to the one they already own and 11% plan to buy to let.
Of those who feel they are unlikely to buy a new home this year, the most significant obstacle is not having enough money for a deposit (16%). This is a particular problem for those aged 18 to 34, a third (32%) of whom cite this as a reason for not purchasing in the next 12 months. This is, however, significantly less than the 42% of 18-34 year-olds who claimed this was an obstacle a year and a half ago, further supporting the argument that the Help to Buy scheme is having a positive effect on confidence.
One in 10 people (11%) say they can’t afford to buy in the area they want to live in and 8% are simply unable to get a mortgage.
Five% of aspiring home buyers say they can’t find a property they like within their price range; an additional 4% say unemployment is the main reason for not buying; and 3% say it’s because they are worried about losing their job. Others have made a conscious decision not to buy, with 4% preferring to rent.
Homeowners are very confident that house prices will rise this year, with 57% of them anticipating an increase in the value of their property compared to just 4% predicting a fall in value. This is a significant increase in confidence since the beginning of 2012, when 29% anticipated a price rise compared to 17% expecting a fall. Over a third of homeowners (37%) expect their property’s value to remain static over the next 12 months.
Those in London are the most confident that the value of their home will increase, with 79% believing it will do so compared to only 2% who believe it will fall. Indeed, optimism is greatest all over the South of England, with 64% of homeowners in the South East and South West expecting the value of their home to appreciate.
Phil Cliff, Director of Santander Mortgages, said:
“The UK has seen a number of encouraging economic statistics emerging in recent weeks and months and our findings suggest a significant increase in confidence in the housing market. Help to Buy is certainly stimulating the market and the extension of the scheme from January 2014 should see existing homeowners who have been unable to move entering the market again.
“It is still vital that prospective buyers look around for the best deals and get some sound advice in terms of properties and mortgages, however. At Santander we want to be front of mind for all homebuyers and we’ve just re-launched our mortgage product range to give our customers the freedom to choose a mortgage that meets their needs now and in the future.”
