General Election and Brexit add to uncertainty weighing on housing market confidence
The result of the General Election and Brexit pose two of the biggest risks to the stability of the housing market in 2020, the Building Societies Association’s quarterly Property Tracker survey reveals.
A rise in the cost of living and weak economic growth is also significant perceived risks.
A mixed outlook for homeownership
Respondents were a little more optimistic when it comes to house prices: 28 per cent expect them to rise over the coming year.
The biggest barrier to homeownership remains raising a deposit (62 per cent) which is relatively unchanged from September 2019 (60 per cent).
Energy efficiency important, but costly
The survey also showed that a majority of people (77 per cent) consider energy efficiency an important factor when buying a home. A quarter of people think that the Government should be responsible for improving UK homes’ energy efficiency, while 42 per cent say the responsibility lies with homeowners. Half of homeowners say the cost presents a barrier to making improvements, with more than half (54 per cent) saying that council tax reductions would incentivise them to make their homes more energy-efficient.
Paul Broadhead, Head of Mortgages & Housing, said:
‘Political uncertainty has dogged housing market sentiment for some time, so it is unsurprising that it continues to play an adverse role. With a clear path still not set for Brexit, and with [the General Election] making an impact, market sentiment has remained negative since June 2017.’
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