House price expectations back to pre-Brexit vote levels
Consumer expectations about house prices have bounced back to levels before the Brexit vote, the Building Societies Association’s Property Tracker survey has revealed.
Almost half (49%) of consumers expect house prices to rise in the next 12 months, with just one in 10 (10%) expecting them to fall.
Paul Broadhead (pictured), head of mortgage policy at the BSA, said: “The worst case scenarios for the economy immediately after the UK voted to leave the EU clearly didn’t come to pass, and this has fed through to people’s higher expectations for future house prices.
“However, we are only just starting the negotiations around the exit process. Consumer views on the housing market and their prospects in it are likely to alter as the negotiation proceeds.
“Today, with actual house prices still rising above earnings in many regions, raising a deposit is an intractable issue. It particularly impacts first time buyers, but second steppers aren’t immune. Higher consumer price inflation will also adversely affect people’s ability to build a deposit in the year ahead.
“No single action can fully address the housing issues consumers face, but increasing the supply of homes would go a long way to limit rising prices. A period of house price stability would in my view be welcome.”
Two thirds (67%) of consumers see raising a deposit as their main challenge in buying a home, while half (49%) say getting a large enough mortgage is a barrier.
Other common worries are affording monthly mortgage payments and a lack of job security.