Quarter agree now is 'good time' to buy

Thursday, 19 June 2008 10:10 AM

Just 27 per cent of Brits think now is a good time to buy property, according to research from the Building Societies Association (BSA).

The organisation's regular survey - Property Tracker - illustrates, while there is a sharp division within the population, and despite the doom and gloom of many commentators, there remains a cadre of people out there willing to buy property.

Mortgage repayments are the biggest fear for buyers, deterring them from entering into a property transaction.

Some 70 per cent of respondents cited this as the key reason for now wanting to purchase a property.

Three other factors were also seen as important barriers, however, they were seen as less significant than the monthly mortgage payment.

Getting access to a large enough mortgage or a mortgage at all was a concern to 49 per cent of respondents, raising a deposit deterred 47 per cent, while concerns about future falls in property prices put of 46 per cent of would be buyers.

However, just 12 per cent considered lack of job security a barrier to buying a property at the moment.

"People often view property buyers as a single group. However, the Property Tracker survey shows that is not the case, and while most people don't believe now is a good time to buy; more than one in four people believe the opposite," said Adrian Coles, director general of the BSA.

"The finding that monthly mortgage payments are currently seen as the main barrier to house purchase demonstrates the extent to which household finances are being stretched, as well as a reflection of the increased price of risk now incorporated into mortgage rates."

Unsurprisingly, those that thought it was not a good time to buy property at the moment tended to be more concerned about future falls in prices.

Of those that disagreed strongly or tended to disagree that now was a good time to buy property, 59 per cent cited the possibility of future falls in prices as a barrier to purchasing at the moment.

Just 30 per cent of those that agreed to some extent that now was a good time to buy thought this risk was a barrier.

"A significant proportion of respondents said that expected future falls in property prices are a reason not to buy," said Mr Giles.

"However, the fact that a lack of job security was relatively unimportant in preventing property purchase suggests that concerns about the wider economy are not currently undermining the housing market."

Chris O'Toole

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