Job insecurity is weighing on consumer confidence in the property market, according to the latest sentiment tracker from the Building Societies Association.

The number of people who think now is a good time to buy a property has dropped from 37 per cent in September to 27 per cent this month, suggesting that the impact of the stamp duty holiday is starting to diminish.

Lack of job security was cited by 65 per cent of respondents as the main barrier to someone buying a property at the moment. 

Despite unemployment fears, 91 per cent of those with mortgages are confident they will be able to maintain their monthly payments.

Looking more closely at regional differences in sentiment, 30 per cent of people living in the Midlands and 27 per cent of people in the South expect prices to rise over the next 12 months, compared to just to 23 per cent of people in the North and 20 per cent in the East of England. 

London is an outlier in the South, as only 23 per cent of people living in the capital expect house price rises.

The sentiment of Londoners may reflect recent reports that homeworking is driving people to move away from big cities.

BSA head of mortgage and housing policy Paul Broadhead says: “While confidence in buying a property has declined, the market is still dealing with the demand created by the stamp duty holiday and the capacity constraints in completing the surveys, valuations and searches in a Covid-secure way before the 31 March deadline.

“To help alleviate this we have proposed a tapered end to the stamp duty holiday, where those who have accepted a mortgage offer by March 31 are given an extra three months to complete the purchase, while still benefiting from the tax reduction. 

“Continuing with the proposed cliff edge end could potentially have a damaging impact on the property market, particularly if those whose sale doesn’t complete within the deadline walk away from the transaction.

“Looking ahead, there are significant concerns around job security and whilst households currently remain confident in their own personal finances, lenders will continue to support those who face payment difficulties, including accepting requests for mortgage payment deferrals up to January 31.”