Buyers believe house prices will go on rising
IT’S usually financial experts who make property market predictions.
However, a survey of 2,000 home buyers earlier this year has revealed what those people currently buying think is set to happen.
The in-depth British Buyer Barometer study, conducted by Sarah Beeny’s estate agent, Tepilo, has revealed that the majority of home buyers think house prices will continue to rise in 2016, with almost a third predicting increases of five per cent.
When it comes to interest rates, almost a quarter of Brits are hopeful they’ll remain static in 2016, despite speculation that they’ll rise.
The younger age groups are most concerned about rising prices and interest rates, with over a third of under 34s highlighting both points as concerns, compared to just one in six of over 55s being concerned about price rises and only one in eight citing rising interest rates as a worry.
Almost a third of home buyers think houses are priced too high and becoming unaffordable for those on low and middle incomes, and when it comes to first-time buyers, almost a third of those surveyed believe that houses are now unaffordable for first- timers and that rising house prices are stopping them entering the market.
Buyers are divided on what they’d like to see happen now, however seeing estate agent fees reduced and a shake up in the survey process to make it simpler are top of the list.
Sarah Beeny, owner of Tepilo, said: “This study gives a thorough insight into what home buyers think, and the results are really insightful.
“Understanding what consumers currently operating in the property market believe will happen is the best way to predict what is most likely to happen as they’re the ones who make the choice to buy, sell or do nothing.
“It’s clear that affordability and increasing house prices, interest rates and utility bills are all playing on buyers’ minds and that many feel that homes are simply becoming unaffordable for the masses. A shortage of housing is also a common worry for many, which is further contributing to price increases in certain areas.
“This makes it clear that the government needs to really step up to ensure the market remains stable and accessible to the majority, and its recent commitment to build more homes and provide further schemes to help first-time buyers on to the ladder is welcome news.
“However, these commitments need to be fully delivered and continually built upon to ensure the UK continues to be a nation where home ownership is the norm.”