Consumers positive on house price growth
The December forecast compares to a 1.6% rise in prices in September and an 8.6% decrease forecast in December last year which demonstrates confidence is slowly returning to the property market.
However, two big barriers to property purchase remain. With unemployment continuing to rise, the consequent lack of job security was identified as the biggest barrier to buying a property, with 60% of respondents identifying it as a barrier. Raising a deposit was also a problem for prospective buyers, with 56% identifying it as a barrier.
Commenting on the findings, Paul Broadhead, head of mortgage policy at the BSA said: “The recent stabilisation of house prices over the latter part of the year is clearly reducing pessimism in the housing market. However, a healthy housing market is heavily dependent on stability in the labour market. And with unemployment likely to rise further in 2010 price growth will be moderate at best in 2010.”