This is according to the latest Property Tracker survey from the Building Societies Association (BSA) in which 50% of respondents thought prices would increase – a far cry from the 25% predicting a rise in December.

And it’s also in stark contrast to the 45% of people who thought prices would fall when they were quizzed in June 2020.

However the survey of consumers by the BSA also found only 30% of people thought now was a good time to buy a property – this is less than the 37% who thought so in March. The BSA said this was likely to have been caused by the fact we are drawing closer to the 30 June deadline for the Stamp Duty holiday, which will taper from 1 July onwards.

But it may also be in response to the increase in house prices which may be good for sellers, but is a challenge for buyers.

Changing priorities

Of those who are likely to be moving or buying their first home in the next six months, location remained the number one priority, the BSA found.

However there was a substantial increase in the proportion who said getting more private outdoor space (73%) and getting away from built up areas and closer to nature (62%) were also important factors.

One of the biggest changes in priorities was the number who were considering a move to reduce their mortgage payments, with over half (51%) citing this as a priority compared to just over a third (37%) in December.

These priority changes are evidence of how people are planning to live and work differently as we emerge from the pandemic.

Deposits: A barrier once more

For the first time in nine months, raising a deposit returned as the biggest barrier to buying a property (59%).

The BSA explained, during the pandemic, a lack of job security became the greatest concern, but this had steadily declined to less than half the respondents (45%) from 68% in September 2020.

It demonstrated there were still a considerable number of people who did not feel confident about their long-term employment prospects.

Indeed, the BSA is calling on the government to urgently reduce the wait time for the DWP Support for Mortgage Interest (SMI) loan, so that struggling homeowners can get timely access to this extra safety net.

Paul Broadhead, head of mortgage and housing policy at the BSA said the results were an encouraging sign the impacts of the Covid-19 pandemic were starting to fade with support such as the Stamp Duty Holiday driving the confidence.

But he added: “Whilst the Nationwide Building Society House Price Index reports house price growth of over 11% in the last 12 months, and our research showing 50% of the public think further price rises are likely in the coming 12 months, it’s not surprising that raising a deposit has returned as the biggest challenge for those wanting to get on the property ladder.

“It’s therefore good to see that in addition to a number of societies supporting the government’s First Homes initiative, many have also re-introduced low deposit mortgages as part of their standard mortgage range.

“Amongst all the positive signs in the housing market, it’s important to note that almost half of the respondents have concerns around their job security.

“Whilst this is a declining trend, it remains clear that there are many people for whom the pandemic continues to have a negative financial impact and it’s important both for lenders and government to ensure that appropriate safety nets are available to give households the support they need, when they need it”.