The proportion of consumers who think that now is a good time to buy a property remained broadly unchanged at 44% compared to 45% in June.
The lack of job security and the ability to raise a deposit remain the greatest barriers to property purchase with 56% of respondents choosing each of these barriers. Furthermore, the average 12 month house price forecast was flat in September compared to a 2.4% rise in June. Concerns over future falls in property prices was chosen as a barrier by 27% of respondents in September, an increase of 8 percentage points compared to 19% in June.
Paul Broadhead, Head of Mortgage Policy at the BSA commented:
“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 (50% in September compared to 57% 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.
"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 (MMR). 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.”
