Fewer Brits see now as a good time to buy as lending challenges grow for first-time buyers
Consumer confidence in the UK housing market has continued to weaken, according to the latest Property Tracker survey released by the Building Societies Association (BSA).
The proportion of people who believe now is a good time to purchase a property has fallen to 17%, down from 20% in January. At the same time, 38% of respondents said they do not believe it is a good time to buy — more than double the number of those who were optimistic.
The BSA findings align with separate data from Barclays Property Insights, which also reported a dip in sentiment. According to that report, housing market confidence dropped from 30% to 28%.
Despite recent cuts to the bank rate and expectations of further reductions this year, affordability remains the main barrier for would-be buyers. The BSA report shows that 61% cited the cost of mortgage repayments as the biggest challenge, rising to 65% among those aiming to buy their first home.
Securing a sufficient deposit was the second most common issue, mentioned by 59% of respondents overall and 62% of first-time buyers. Access to large enough mortgage loans was a concern for 42% of first-time buyers, making it the third most cited hurdle.
The recent end of the temporary increase to stamp duty thresholds on March 31 has also affected sentiment. Thirty percent of those surveyed now consider stamp duty a major barrier, up from 22% in January.
Concerns about employment security are growing too. More than a quarter (26%) cited job stability as an obstacle, compared to 21% in September 2024.
On pricing, nearly half (46%) of respondents expect property values to increase over the next year. Just 13% believe prices will decline. Annual house price growth currently sits at around 4%, suggesting relative stability for now.
Paul Broadhead (pictured), head of mortgage and housing policy at the Building Societies Association, said the data underscores the growing difficulties faced by prospective homeowners — especially first-time buyers.
“The biggest concern from the latest Property Tracker results is the clarity it provides on the affordability issues faced by first-time buyers,” he stressed. “Many feel that the dream of homeownership is clearly nothing more than that, a dream, particularly those not fortunate enough to have family who can provide financial support.
“It’s not surprising that sentiment in the housing market has declined overall, with the recent changes to stamp duty meaning pretty much every house purchaser will now pay more. But for first-time buyers the extra stamp duty tax which they now need to pay is substantial and increases the already significant burden of raising the upfront costs required to buy a home.”
Broadhead added that market momentum depends on first-time buyer participation, and that broader changes are needed to improve access to homeownership.
“A further bank rate cut when the MPC meets in a couple of weeks should help to improve sentiment in the housing market, but to have a meaningful impact radical changes are required,” he said.
“A starting point must be improving the balance between housing supply and demand. The government has set an ambitious target for building more homes, with some bold statements on planning processes. But we now need action not words – more homes which are more affordable and more appropriate to the needs of those living in them.
“Alongside this regulation must be adapted to enable lenders to address the barriers facing first-time buyers. This is under-review, but we need bold and quick action if we are to avoid a growing generation of lifetime renters.”
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