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BSA: Job security greatest obstacle to homeownership

Jake Carter

September 17, 2020

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The greatest obstacle to homeownership is job security fears, according to The Building Societies Association.

Data collected by the association shows that 68% of respondents believe this to be the hardest obstruction to overcome.

Looking back to March 2020, just 35% of all respondents noted job security fears as the biggest obstacle in the way of homeownership.

However, market confidence has seen an uptick; 37% of respondents in September 2020 outlined now as a good time to buy. In comparison, the figure stood at 25% in June 2020.

Moreover, 32% of respondents believe house prices will rise over the proceeding 12 –months, despite the stamp duty holiday set to conclude in March 2021.

Paul Broadhead, head of mortgages and housing at the BSA, said: “Many people who were part-way through a move in March have been able to complete and there is no doubt that the virus has had an effect on people’s attitudes to home.

“Mortgage application volumes are strong, but it seems that completions are taking a little longer then they would have done pre-COVID.

“Strong application volumes, coupled with the need to focus on those who took a mortgage payment deferral are causing some capacity challenges, which is one of the reasons why the longevity of some products is so short.

“Looking ahead, the volume of consumers going from a payment deferral back to normal payments is encouraging.

“However, we are not in normal times and forecasts of rising unemployment, and the imminent end of government support schemes mean that lenders are rightly focused on risk and affordability.”


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