Property Market Enters an Optimistic Period
Even with a number of uncertainties still facing the property market, including next month's general election, there is still optimism across the sector. Levels of optimism, which had dropped during 2014, have started to increase once again. This shows that more people are beginning to feel that it is a good moment to look at buying a property or moving up the ladder.
36% of those who took part in the Building Societies' Association (BSA) property-tracker index agreed that it was the right time for them to purchase a property. This level of optimism has been further encouraged by the fact that there was a significant fall in the number of those who feel it is a bad time to be buying. Overall, the-property tracker index has risen to 23% - it reached a low in September last year of 9%. This was the time that changes to mortgage regulations were brought in and limits on lending levels for the housing market were introduced.
This increased optimism could be a sign that the number of transactions will rise through the year. With construction activity continuing to rise, there are more properties available for buyers to choose from, whether they're looking for a starter home or moving up the property ladder and searching for a large family property with wrought iron fencing.
Home-Buyer Concerns
Levels of optimism might be retuning to the housing market, but that doesn't mean that everyone is able to purchase the house they really want. The survey also found that one of the biggest hurdles potential buyers face is getting a large enough deposit together. 59% of respondents to the BSA index agreed with this, which is a rise of 3% since December's figures were released.
One of the other major worries for home-buyers is the potential for interest rates to rise in the near future. 10% of people believe that if rates were to increase over the course of the year by 1%, they would have to miss a payment on another bill in order to make the mortgage repayments.
The optimism we are now seeing in the housing market should be able to gather momentum in the lead-up to the general election and through the post-election period. With fewer worries over household finances, low levels of inflation and a range of initiatives aimed at the housing sector, the market should be well equipped to get over any short periods of decline.