Next week’s Budget and the impending general election are two of the reasons why confidence in the housing market remains fragile according to the Building Societies Association’s latestProperty Tracker survey.
The mutual body reports that while buyers are forecasting that property prices will grow, they are uncertain whether now is a good time to buy.
Although the survey found that people expect property prices to rise by 2.2% over the next 12 months, just 49% agreed that now is a good time to buy property. This compares to 58% in December 2009, and is the first time that the proportion agreeing that now was a good time to buy property has fallen below half since December 2008.
Paul Broadhead, head of mortgage policy at the BSA, said: “It is no surprise that people are uncertain if now is a good time to buy property. Potential buyers will be waiting to see the effect on the property market of the end of the Stamp Duty holiday. The forthcoming budget and general election provide further levels of uncertainty to potential homebuyers.