Property prices set to rise

According to the latest Building Societies Association (BSA) Proeprty tracker survey, property prices are expected to rise an average 1.4% over the next year.

Perhaps it’s time for some cautious optimism?

The survey certainly paints a much better picture compared to the expected 7% fall predicted in June 2008.

Equally in June 2008, only 27% felt that it was a good time to buy property, compared to the 59% who now think it’s a good time to buy.

Whilst this is good news, the continuing threat of unemployment and restrictions on mortgage availability are both likely to limit the housing market recovery.

Paul Broadband, Head of Mortgage Policy at the BSA, commented ‘People clearly recognise that with both property prices and mortgage rates having fallen, there are potential bargains to be found meaning that now is a good time to buy.’

He added though ‘for many, concerns over job security mean that they are unlikely to actually go ahead and buy. They will need to see confidence in the jobs market return before they make their move in the property market.’