21 December 2011

Consumer confidence in housing market stable

The latest Property Tracker survey from the Building Societies Association shows that consumer confidence in the housing market remains remarkably stable, if far from booming, despite the gloomy outlook for the economy. Consumer sentiment is a key indicator of future activity in the property market and provides an early snapshot of potential activity in 2012.

A cross section of 2069 adults across England, Wales and Scotland were asked for their views and intentions about home purchase in early December:

• 44% felt that now was a good time to buy compared to 25% who did not. The over 55s had the most positive view of the current market with 54% saying that now was a good time to buy. 18-24s were the least sure with 32% agreeing it was a good time to buy.
• 12% of respondents intend to buy next year whereas 63% said that they had no need or desire to move in 2012. The 24-34s have the highest intention to buy in the next 12 months (21%)
• The most common barriers cited by respondents are: raising the deposit to buy a property (64%), obtaining a large enough mortgage (57%), and fears over job security (54%). Far fewer see the potential for future house price falls as a barrier (21%)

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