Brexit is biggest danger to housing market say building societies

Brexit poises the single biggest risk to the stability of the housing market according to a survey for the Building Societies Association – this is greater even than the uncertainty of the General Election.

Brexit was selected by 43 per cent of respondents as the largest risk, whereas the result of this week’s election was the greatest cause of concern to only 30 per cent.

YouGov, for the BSA, spoke to 2,012 late last month.

A rise in the cost of living (36 per cent) and weak economic growth (30 per cent) are also significant perceived risks.

Yet people are a little more optimistic when it comes to house prices: 28 per cent expect them to rise over the coming year, up five per cent on this time last year.

The biggest barrier to homeownership remains raising a deposit (62 per cent).

The majority of people (77 per cent) consider energy efficiency an important factor when buying a home and a quarter of people think that the government should be responsible for improving UK homes’ energy efficiency; 17 per cent think it’s down to energy companies and 42 per cent say responsibility lies with homeowners.

Paul Broadhead, BSA Head of Mortgages and Housing, comments:

“Political uncertainty has dogged housing market sentiment for some time, so it is unsurprising that it continues to play an adverse role.”

Kindly shared by Estate Agent Today