UK consumers have reported that all the major barriers to property purchase have fallen, according to the BSA’s final Property Tracker of 2015.
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 over half of consumers with 52% saying it is a hurdle to overcome. This is down from 59% in September 2015 and the high of 69% in September 2011.
From September to December 2015, access to mortgage finance as a barrier to home ownership dropped from 41% to 38%. The affordability of monthly mortgage repayments fell from 35% to 33% and lack of job security is now at 26%, down from 28%.
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.”
Courtesy of Financial Adviser