Housing Market Confidence Slow to Recover
Consumer confidence in the UK housing market has yet to fully bounce back following June’s General Election, according to new research from the Building Societies Association (BSA).
The study found that 27% of respondents do not believe now is a good time to buy a property, compared to just 23% who think it is.
Lingering Uncertainty Despite Political Stability
Although the political climate has settled somewhat since June, confidence in the property market is still being undermined by a number of ongoing challenges:
Raising a deposit remains the single biggest hurdle, cited by 68% of respondents.
Mortgage affordability is a concern for 45% of would-be buyers.
Stamp duty costs are deterring home movers, making it harder for existing owners to trade up.
These barriers are not only affecting first-time buyers but also restricting the movement of existing homeowners, which in turn reduces available housing stock and drives up prices for those just entering the market.
Expert Analysis from the BSA
“Confidence in the housing market is clearly fragile,” said Paul Broadhead, Head of Mortgage Policy at the BSA. “Consumers were faced with political uncertainty following the vote to leave the EU and the unexpected General Election results, and now the rising cost of living is their latest challenge.”
“Consumer prices are running ahead of wage growth, and there is little evidence of this changing in the short term. This is adding to the formidable affordability constraints already facing prospective home buyers.”
Mr Broadhead also noted that affordability pressures on home movers are mirroring those faced by first-time buyers, resulting in a market bottleneck where fewer homes are available for sale, pushing up prices further.
What This Means for Buyers and Sellers
Whether you are a first-time buyer struggling with deposits or an existing homeowner facing affordability constraints, navigating today’s housing market requires careful planning and the right legal support.
Our property solicitors can guide you through the buying or selling process in Scotland, helping you avoid costly pitfalls and complete your transaction smoothly.
Contact Our Property Lawyers Today
If you are buying or selling property in Scotland, speak to our experienced team for clear, practical advice.
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