The proportion of people who believe now is a good time buy a property has risen to it’s highest levels since December 2021. Sentiment around affordability of mortgage payments and concerns over mortgage repayments has also seen a move toward greater positivity in signs that the seasonal Spring bounce may be on its way.
One in five respondents (19%) to a survey of over 2000 agreed that now was a good time to buy. This has shifted upward from 16% in December 2023 and 14% in June 2023. Respondents who felt now isn’t the right time to buy fell from 41% to 36%, as part of an overall downward trend in negative sentiment, from a high of 52% in September 2022. Just over one in four (27%) neither agreed nor disagreed, and 18% said they didn’t know. 
The numbers are drawn from the latest Property Tracker report from the Building Societies Association (BSA) which explores consumer sentiment around the property market via a quarterly survey. The questions cover:
- Whether it is a good time to buy property in the UK at the moment
- What are considered to be the greatest barriers to buying property
- Expected changes in house prices
In December 2024 a halt in interest rate rises coupled with falling mortgage interest rates had a positive impact on sentiment. The latest insight suggests a continuation of the trend.
When asked how confident homeowners are about paying their mortgage over the next six months, 9% said that they are either not very confident or not at all confident, a reduction from 12% in December 2023, and the lowest level for almost two years. 90% of mortgage borrowers confident they will keep up with payments, an increase from 85% in December 2023.
One of the most significant falls in sentiment around barriers to home ownership is the concern around future falls in property prices; which has decreased to it’s lowest level for eight years. Just over one in ten respondents (12%) suggested it would be a barrier to a property purchase, down from one in four (27%) just two years ago. And raising a deposit remains a significant barrier to buying a home wit 60% of people citing the issue, largely unchanged over the past 23 months.
Commenting on the findings, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:
“The overall reduction in mortgage rates following the peak in 2023 has been welcomed by homebuyers, and has seen an improvement in confidence in the housing market.
“While consumer prices remain high, wage growth has been strong meaning many households are now in a stronger position than six months ago. There is also an expectation that if inflation continues to fall, the Bank Rate may be cut this year, further easing pressures on borrowers and increasing mortgage affordability.
“Whilst affordability of mortgage payments remains the biggest barrier to house purchase, it is reassuring that this has reduced over the past six months. Expectations around house prices reflect this more stable outlook for the housing market.
“Whilst there has been a welcome reduction in those that are concerned about meeting their mortgage payments, lenders remain very aware that there are a number of homeowners who are struggling. They are ready to help and well equipped to offer tailored support to anyone who may be struggling and would encourage anyone with concerns to contact them as soon as possible.”
