Barriers to buying property
The Building Society Association’s (BSA) quarterly property tracker survey1 reveals that Brexit has taken a back seat in the property sphere at least, with respondents saying that house prices have a bigger impact than politics on whether or not they’ll look to buy. The survey found that:
- Over a third (34%) of respondents who disagreed with the statement that ‘now is a good time to buy’ said a correctionin house prices would change their minds, as opposed to 27% who said an agreement over Brexit would do so.
- 64% named ‘raising a deposit’ as their biggest barrier to home purchase.
What’s going on with house prices
You pays your money and you takes your choice! There are so many conflicting reports out there, it’s hard to be sure what has happened with house prices over the past few months, let alone what might be expected to happen over the rest of this year.
- Almost a third of those questioned in The Building Society Association’s (BSA) quarterly property tracker survey1 think prices will increase in the next year.
- Results from the home.co.uk price index2 meanwhile, suggest that prices have reached their peak in several areas, “and price-cutting looks inevitable as properties spend longer and longer on the market.”
- Contradicting these findings, we have the results of Really moving’s inaugural House Price Forecast3, telling us that house prices, after a 6% drop over the past 12 months are now holding steady and are expected to increase by 6% in May and June, followed by a rise of 3% in August.
- The Halifax4 provides another take on the situation in its latest house price index, reporting that prices have more than held steady – with a rise of 2.5% on figures from the preceding three months.
The implications for your mortgage
If you’re looking to buy a house – either your dream family home or an investment property – you can certainly benefit from all this confusion, if you’re willing to hold your nerve and make a play for price drops. And that may mean you can afford more house that you might do otherwise – or get a property under your budget, so you have lower mortgage repayments than you had anticipated. In an uncertain market, there are undoubtedly deals to be done and bargains to be had – but it’s never been more important to have expert mortgage advice in helping you navigate choppy waters successfully.