Bar­ri­ers to home own­er­ship fall as hous­ing mar­ket sen­ti­ment im­proves

The Oban Times - - Advertising -

UK CON­SUMERS have re­ported that all the ma­jor bar­ri­ers to prop­erty pur­chase have fallen, the BSA’s fi­nal Prop­erty Tracker of 2015 re­veals.

Rais­ing a de­posit - the sin­gle big­gest bar­rier since 2010 - is now at its low­est level for six years. How­ever, it still presents a bar­rier to more than half of con­sumers with 52 per cent say­ing it is a hur­dle to over­come. This is down from 59 per cent in Septem­ber 2015 and the high of 69 per cent in Septem­ber 2011.

From Septem­ber to De­cem­ber 2015, ac­cess to mort­gage fi­nance as a bar­rier to home own­er­ship dropped from 41 per cent to 38 per cent. The af­ford­abil­ity of monthly mort­gage re­pay­ments fell from 35 per cent to 33 per cent and lack of job se­cu­rity is now at 26 per cent, down from 28 per cent.

The re­sults in­di­cate that peo­ple are feel­ing rea­son­ably con­fi­dent about home own­er­ship as an op­tion for them. This could par­tially be as a re­sult of the fo­cus on hous­ing in the Au­tumn State­ment in Novem­ber and is ev­i­denced by the strong lend­ing by build­ing so­ci­eties and other lenders across the mar­ket this year.

Paul Broad­head, BSA head of mort­gage pol­icy, said: ‘ This snap­shot of sen­ti­ment in the hous­ing mar­ket shows that con­sumers are feel­ing rea­son­ably op­ti­mistic about get­ting on or mov­ing up the prop­erty lad­der. Aware­ness of Govern­ment schemes, such as Help to Buy and the new Help to Buy, Lon­don plus the avail­abil­ity of higher loan-to-value mort­gages helps to bring choice and com­pe­ti­tion to the mar­ket. Hous­ing gen­er­ally needs to re­main a top pri­or­ity for the Govern­ment.

‘Now is the time to fo­cus on build­ing more homes, sup­ported by ap­pro­pri­ate in­vest­ment in in­fra­struc­ture, in or­der to be­gin to ad­dress the long term im­bal­ance of hous­ing sup­ply with de­mand.

‘ In­no­va­tive mort­gage prod­ucts and in­ter­me­di­ate forms of ten­ure must also be cham­pi­oned – not just by build­ing so­ci­eties – but by all lenders, the reg­u­la­tors and govern­ment. This will go some way to de­liv­er­ing a sus­tain­able hous­ing mar­ket which caters to the needs of a wide range of credit wor­thy con­sumers, not just those with ‘vanilla’ bor­row­ing re­quire­ments.’

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