Housing market confidence 'bounces back'

by Gary Whittaker

Faith in the UK housing market has recovered, according to new research. 

A survey carried out by YouGov on behalf of the the HomeOwners Alliance, myhomemove and BLP Insurance found that issues such as stamp duty and negative equity are no longer such a concern for the British public. The number of people worried by both of these factors has dropped by around ten per cent compared to last year.

One in three of the people surveyed said the government's reforms to stamp duty have made it easier for them to buy their first home or move up the property ladder. Some 51 per cent of respondents said this issue still represents a cause for concern - down from 64 per cent 12 months ago. 

Despite the improved sentiment, Wayne Tonge, head of sales at BLP Insurance, provided a word of caution.

"As confidence in the housing market makes a welcome return homeowners must keep their feet on the ground," he stated. 

"When the market recovers and the money starts to flow, standards will potentially drop and aspiring homeowners should be taking steps to protect one of the largest investments they are ever likely to make," the property expert added.

One issue that remains a concern is the ability of first-time buyers to get on the housing market. Some 83 per cent of respondents see this a concern, with the same number highlighting saving enough for a deposit as a worry.

Seven in ten people are worried about the supply of housing in the UK, while just under half are concerned about the quality of properties on the market.

Despite these anxieties, sentiment is more positive on all major housing issues than it was last year, suggesting the market is moving in the right direction. 

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23-March-15General Lettings News