Market optimism returns
The BSA’s Property Tracker Index, which also takes into account people who think that now is a bad time to buy, revealed that optimism bounced back from a 9% low in September 2014 to 14% in December and 23% in March.
Paul Broadhead, head of mortgage policy at the BSA, said: “Optimism in the housing market is back after a long, slow winter.
“Conditions in the mortgage market and the wider economy are improving and this confidence is driving consumer sentiment – especially those looking to purchase a home.
“Consumers and providers are also cheered by the fact that house building is starting to increase, household finances are less squeezed and inflation has fallen to 0%.
“Even if deflation happens – provided it is short lived and is not generated by a fall in demand in the economy – it should not be damaging.”
Three in five (59%) potential buyers see raising a deposit as the biggest hurdle to getting their foot on the property ladder.
Some are also worried by the prospect of a 1% interest rate rise, as 12% felt that making loan repayments would be ‘constant struggle’ as a result.
Broadhead added: “Earlier this month we asked for a revolution in the provision of new housing in our discussion document Housing at the Heart of Government.
“Like millions of others, we now await the outcome of the general election to discover whether housing will sit at the top of the political agenda as promised.”