Confidence in UK Housing Market Growing
According to recently released figures, UK residents are seeing light at the end of a dark housing market tunnel. Momentum is possibly building and the latest surveys are painting quite an encouraging picture. Less than 50% believe roadblocks to mortgage are still a major issue, which is the lowest level since the crisis was in full swing in the middle of 2008, according to the Building Societies Association (BSA). The data also revealed first time buyers are feeling the noose loosen in efforts to reach the first rung of the property ladder.
There is also less belief in the fact that house prices will drop by the end of the year. A full 25% less of those surveyed think prices will take a plunge.
The government-backed Funding for Lending scheme has helped many house hunters find their destination. Many of those would still be looking based on the amount of deposit which is now required. This amount is presenting a challenge, but with the scheme cheaper money has been made available. Remortgage activity is also picking up with the amount of original loans which have been approved.
Adrian Coles, director-general of the BSA, commented on the current state of lenders, saying: "On the mortgage supply side, a number of building societies have made it clear in their results that they intend to lend more in 2013 than in 2012. However, this market is driven by demand too and this is why customer sentiment is such an important lead indicator and why today's results are encouraging."