Mortgage News
Consumers positive on house price growth: BSA
Property prices will rise 3% in 2010 in a sign that confidence is slowly returning to the property market, according to the December Property Tracker survey from the Building Society Association (BSA).
The survey, which was conducted on over 2,000 people, compares favourably to a forecast of a 1.6% rise in prices in September and an 8.6% decrease in December 2008.
However, two big barriers to property purchase remain. With unemployment continuing to rise, the consequent lack of job security was identified as the biggest barrier to buying a property, with 60% of respondents citing this. Raising a deposit was also a problem for prospective buyers, with 56% identifying it as a barrier.
Paul Broadhead, head of mortgage policy at the BSA, said unemployment was likely to rise further in 2010 and price growth will be moderate at best.
He added: “The recent stabilisation of house prices over the latter part of the year is clearly reducing pessimism in the housing market. However, a healthy housing market is heavily dependent on stability in the labour market.”
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