This is according to the latest consumer survey from the Building Societies Association (BSA) which discovered uncertainty over employment was considered a major hurdle to the property market by 68% of consumers quizzed.
This compared to just 37% of respondents who cited job security as a barrier this time last year, and 35% in March – just before the lockdown.
It highlights how consumer sentiment towards the housing market is being influenced as the end to schemes such as furlough and mortgage holidays come into sight.
Paul Broadhead, head of mortgages and housing at the BSA said: “The volume of consumers going from a payment deferral back to normal payments is encouraging.
“However, we are not in normal times and forecasts of rising unemployment, and the imminent end of government support schemes mean that lenders are rightly focused on risk and affordability.
“Whilst very definitely open for business, responsible lending is the watchword as we navigate the next six to 12 months.”
But, despite these long-term worries, the Property Tracker also identified a ‘marked uplift’ in the number of people who thought now was a good time to buy a property. This had risen from 25% in June to 37% this month.
People were generally more positive in the East of England (48%) but were far less optimistic in Yorkshire and Humberside (31%).
House prices
Meanwhile, there was also positivity when it came to house prices over the next 12 months with 32% of people predicting rises in the next 12 months – even beyond the end of the stamp duty holiday in March.
The BSA said in many areas house prices had been boosted by pent-up demand after lock-down, coupled with the stamp duty holiday.
When asked if they were more or less likely to move home because of the pandemic, 4% reported they had already moved and 10% stated they were more likely to do so.
Focusing in on the regions, people in London (15%) and in Scotland (14%) were the most likely to move home because of Covid-19 and people in Yorkshire and Humberside (4%) and Wales, West Midlands and the South West all at 7% were the least likely to make a move.
Broadhead said: “The boost in activity and transaction volumes in the housing market since full lock-down was eased is to be welcomed. Many people who were part-way through a move in March have been able to complete and there is no doubt that the virus has had an effect on people’s attitudes to home, and what in an ideal world they want and need from theirs. As our survey shows some have already taken action.”
He added: “Mortgage application volumes are strong, but it seems that completions are taking a little longer then they would have done pre-Covid.
“Strong application volumes, coupled with the need to focus on those who took a mortgage payment deferral is causing some capacity challenges, which is one of the reasons why the longevity of some products is so short.”
