What are the Barriers to Home Ownership?
According to the latest survey from the Building Societies Association, raising a deposit for a property is seen as the biggest hurdle when purchasing a home. It’s quarterly tracker shows that 59% of the 2,000 plus UK adults who were surveyed cited the deposit as the main barrier. This is up from 54% in December 2020 and 40% in the preceding June.
Previously, property purchases were prevented by job insecurity – in fact, in December 2020, 65% of respondents stated this was the reason compared to just 45% in June. Of course, this is still barrier for many but it has been overtaken by the issue of raising a large enough deposit.
It’s clear that the pandemic has had a negative impact on many people, especially in terms of their finances. Many businesses have closed permanently or temporarily, laying off staff or putting them on Furlough which has meant their wages are 80% their pre-pandemic level.
Data from BSA also shows that the people are still eager to move to the countryside in a quest for a more rural lifestyle, more space for your money and more access to outside space following a series of lockdowns and limitations.
In December, 48% of those surveyed (both home-movers and first-time buyers) stated that they wanted to move away from built-up areas. This has now increased to 62%.
Of those asked, 51% said that securing a lower mortgage payment is on the agenda, compared to 37% in December.
Of everyone surveyed, half expect house prices to continue growing over the next 12 months and 11% of people expect house prices to fall. This is a reverse of the results of last year’s survey when 45% of those asked thought house prices would fall and 16% saw a house price rise on the cards.
With recent figures from Nationwide Building Society in their House Price Index showing house price growth of over 11% in the last 12 months, it’s not surprising that many people think that prices are likely to rise further and exacerbating the worry surrounding raising a large enough deposit in order to get onto the property ladder.
However, mortgage rates are still low and the introduction of 95% mortgages via the Mortgage Guarantee Scheme will provide a much needed boost to many aspiring homeowners.
Clyde Property is a leading independent, multiple award-winning estate agent with over 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today, for friendly, impartial advice on letting and renting property.