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Consumer confidence takes a dip
15 September 2010
The Building Societies Association’s property tracker survey has reported a dip in consumer confidence, despite improved access to mortgages. The survey revealed that 26% of consumer’s did not think it was a good time to invest in the housing market, an increase of 5% since June 2010. The majority of consumers who think now is a good time to buy a property remained broadly unchanged at 44% compared to 45% in June. The survey also revealed that 56% of consumers were concerned about the lack of job security and ability to raise a deposit. Paul Broadhead, head of mortgage policy at the BSA said: “It is clear that concerns about future falls in property prices are having a significant impact on consumer confidence. Job security remains one of the major barriers to house purchase.” Housing economist, Suren Thiru from Halifax said: “The situation is likely to remain this way until there is greater confidence in the strength of the economy. As things stand, prospects for the housing market are underpinned by low interest rates; therefore it depends on how the banks react to the market in the coming months.” The average 12 month house price forecast was flat in September compared to a 2.4% rise in June earlier this year. However, earlier today Nationwide reported a rise in consumer confidence in August, to similar levels as last year after falling for three consecutive months. Broadhead added: “Whilst credit conditions have eased slightly, the BSA is urging the FSA to move cautiously on the proposed Mortgage Market Review (MMR). As the proposals stand they could seriously limit access to mortgage finance for many credit worthy borrowers and further dampen hopes of housing market resurgence,” he said Published by Mortgage Solutions
