The news comes as the Council of Mortgage Lenders reports slightly more positive data for the industry with a 4 per cent rise in mortgage completions in November, compared to October.
Also consistent with the CML’s recent data is the news that younger people are the most likely to buy, with 12 per cent of those aged 18-34 saying they are likely to purchase a new home. This is compared to 7 per cent of 35-54 year-olds and 5 per cent of those aged 55 or over.
Overall 53 per cent 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 15 per cent who are more negative.
By region, Londoners are the most confident about their chances of purchasing a home this year, with 13 per cent believing it is likely they will do so. At the other end of the scale only 4 per cent of those in the East of England think they are likely to buy a new property in 2012.
Of those who are likely to buy a new home this year, roughly a quarter (24 per cent) will be first time buyers, while just over a third (37 per cent) intend to buy a new house and sell their current one.
A further 15 per cent plan to buy to let and 11 per cent will be buying an additional property to one or more they already own.
Obstacles to home purchase
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 (22 per cent). This is a particular problem for those aged 18 to 34, 42 per cent of whom cite this as a reason for not purchasing this year.
One in seven people (14 per cent) say they can’t afford to buy in the area they want to live in and 9 per cent are simply unable to get a mortgage.
5 per cent of aspiring home buyers say they can’t find a property they like within their price range and 3 per cent are waiting for prices to fall further.
An additional 4 per cent say unemployment is the main reason for not buying in 2012, and 2 per cent say it’s because they are worried about losing their job.
Others have made a conscious decision not to buy, with 8 per cent preferring to rent and 2 per cent happy to remain living with their parents or other relatives for free.
Homeowners confident of price increases
Homeowners are relatively optimistic about house price rises this year, with 29 per cent of them anticipating an increase in the value of their property over the next 12 months, compared to just 17 per cent predicting a fall in value.
Almost one in two (48 per cent) homeowners thinks their home’s value will remain static.
Those in London are the most confident that the value of their home will increase, with 40 per cent believing it will do so compared to only 13 per cent who believe it will fall.
In contrast, only 21 per cent of homeowners in the North West expect the value of their home to appreciate, compared to 24 per cent who believe it will lose value.
Phil Cliff, Director of Santander Mortgages, commented:
“Given the tough economic climate people are becoming more upbeat about their prospects of purchasing a new home this year. It’s been a tough few years for the property market overall, but prices have made a steady recovery so there’s every reason to feel cautiously optimistic.
"There are however, still a number of obstacles out there facing potential buyers, including securing the required funds, which is why the need to look around for the best deals and get some sound advice in terms of properties and mortgages is now greater than ever.
“At Santander we continue to support the market with our comprehensive range of competitively priced mortgages, available up to 90% LTV, which now also includes a range of buy-to-let deals available through intermediaries.
"In addition, all our new mortgages have a Homebuyer Solutions package (free valuation and £250 cashback) available, which helps customers with the up front costs of moving.”
At Q3 2011, Santander’s share of new mortgages was 16.5% representing over one in six new mortgages and demonstrating the bank’s continued commitment to helping homeowners through a challenging time for the economy.
