Homebuyers’ Biggest Concern with Down Payment Returns: BSA



Raising a bond is considered the biggest obstacle to buying a property for the first time in nine months, according to the latest Building Societies Association survey.

Its quarterly property tracker describes 59% of the more than 2,000 UK adults surveyed, citing this as the main hurdle, up from 54% in December 2020 and 40% in the previous June.

Previously, job insecurity was seen as a brake on the purchase of real estate – in December, 65% of respondents answered this question compared to 45% in June – a figure that the BSA nevertheless considers important not to not minimize.

“Although this is a downward trend, it remains clear that there are many people for whom the pandemic continues to have a negative financial impact,” said Paul Broadhead, mortgage policy manager. and BSA housing.

And continuing the impact of the coronavirus on the housing market, BSA data shows people are still keen to relocate to the countryside.

In December, 48% of people questioned – both movers and first-time buyers – said they wanted to move away from urban areas. This figure has now risen to 62%.

Getting a lower mortgage payment is also on the agenda for many people – 51% of those surveyed, up from 37% in December.

Overall, 50% of people expect house prices to continue to rise over the next 12 months and 11% expect a decline.

A year ago, the trend reversed: 45% of respondents believed house prices were going to go down and 16% saw house prices increase on the cards.

Broadhead adds, “While the Nationwide Building Society’s Home Price Index reports home price growth of over 11% over the past 12 months, and our research shows that 50% of the public believes further price hikes are likely over the next 12 months, it’s no surprise that raising a bond has come back as the biggest challenge for those who want to climb the property ladder.

“So it’s good to see that in addition to a number of companies supporting the government’s foster homes initiative, many of them have also reintroduced low deposit mortgages as part of their range of standard mortgages. “



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