"“Whilst housing market activity is likely to remain muted for the remainder of 2018 there is good news for would-be home buyers as house prices start to cool in some places "
The BSA's index turned negative for the first time since the financial crisis in June 2017 and has remained negative in September, December and now March 2018.
It shows that more people are negative than positive about buying a new home and also asks consumers to identify the more practical barriers that are holding them back from buying.
The survey shows that since December 2008 the single biggest barrier has consistently been the challenge of raising a deposit. Since March 2016 this has been a barrier identified by 60% or more of consumers, in March 2018 68% of consumers identify raising a deposit as their biggest barrier to home ownership.
Paul Broadhead, head of mortgage policy at the BSA, said: “The UK is experiencing period of uncertainty and this is having an adverse effect on consumer sentiment and behaviour in the housing market. The concerns that consumers have are clear from a housing index that has remained negative for four quarters. How consumers are behaving can in part be demonstrated by the six-year high in remortgage lending reported by the Bank of England for January 2018 and February figures from RICS which showed listings and new buyer enquiries drifting lower in some regions, particularly London and the South East.
“Whilst housing market activity is likely to remain muted for the remainder of 2018 there is good news for would-be home buyers as house prices start to cool in some places across the country. Mortgage finance remains readily available and fierce competition amongst lenders is good for consumers. If the Bank Rate rises as anticipated by a further 0.25% in May, it will still remain historically low.”
