People starting to find it easier to buy a home
Written on 9 December 2015
People are now finding it easier to buy a home or move up the property ladder than they have for the last six years, according to the Building Society Association’s latest quarterly Property Tracker report.
Barriers to home buying
Raising a deposit has been the biggest barrier to buying a home since 2010 but it’s now at its lowest level for six years. While around half (52%) of consumers say it’s a major hurdle to overcome, this figure is down from 59% in September 2015 and well below its high of 69% in September 2011.
Getting a mortgage also appears to have become easier. Between September and December 2015, this barrier to home ownership dropped from 41% to 38%, says the report. Homebuyers are also finding monthly mortgage repayments more affordable with only 33% of people now saying this is preventing them buying a new home compared to 35% in the last quarter.
Job security is also playing its part with just 26% of people saying this is a problem compared to 28% in the last report.
People now feel more confident about home ownership, says the BSA. Paul Broadhead, Head of Mortgage Policy at the BSA, says the focus on housing in the Autumn Statement and strong lending by building societies and other mortgage providers have probably all played a part in this.
“This snapshot of sentiment in the housing market shows that consumers are feeling reasonably optimistic about getting on or moving up the property ladder. Awareness of Government schemes, such as Help to Buy and the new Help to Buy, London plus the availability of higher loan-to-value mortgages helps to bring choice and competition to the market. Housing generally needs to remain a top priority for the Government,” he said.
Help with buying a home
First-time buyers have just been given a helping hand to get on the property ladder with the introduction on 1 December of Help to Buy ISAs. These are just like cash ISAs except they are aimed at first-time buyers who receive a bonus on their savings if they save a certain amount and put this towards a deposit on a home.
If you’d like to find out more about saving for a home, mortgages, remortgaging and owning property, see our mortgage and home guides in the Money Matters section of our website.