Deposit burdens and monthly repayments still deter buyers despite improved lending conditions
Confidence in securing a mortgage is rising, but affordability remains the primary obstacle to homeownership, according to research published by the Building Societies Association (BSA).
The BSA's latest Property Tracker shows that just over a third of respondents (37%) now identify mortgage access as a barrier to buying, down from nearly half (48%) two years ago.
Despite the improvement, affordability-related concerns continue to lead. The share of people citing monthly repayments as an obstacle fell from 63% to 55% over the same period, yet repayments and raising a deposit — each cited by 56% of respondents — remain the most commonly reported barriers.
The findings also highlight a tension in buyer sentiment. Only 16% of respondents believe now is a good time to purchase, yet those expecting house prices to rise over the next 12 months (38%) outnumber those anticipating a fall (14%) by nearly three to one, suggesting that delaying a purchase is not viewed as a clear solution.
Housing market confidence has nonetheless improved. The Property Tracker's confidence index rose eight percentage points over the past three months to -18%, remaining in negative territory — as it has for nearly five years — but continuing a gradual upward trend.
"For too long, many aspiring homeowners have assumed getting a mortgage was the biggest barrier to buying a home," said Paul Broadhead (pictured right), head of mortgage and housing policy at the Building Societies Association.
"That's beginning to change. Lender innovation, greater flexibility around loan-to-income lending and the FCA's mortgage reforms are helping more creditworthy first-time buyers access the market.
"Affordability is now the real challenge. Tomorrow's Bank Rate decision will be closely watched, but whatever the outcome, too many people are still ruling themselves out without ever speaking to a lender or broker. Before deciding homeownership isn't for you, find out what's possible, as you may be closer than you think."
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