Now is a good time to buy say 27%

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by Kay Murchie

According to research from the Building Societies Association (BSA), 27% of Britons believe now is a good time to purchase a property.

The BSA’s survey, Property Tracker, shows that in spite of the bad news in the property market currently, there are still a number of people who believe that property is currently a good investment.

The biggest concern for buyers is mortgage repayments which is putting them off from buying a house. 70% of those questioned cited this as the main reason for not wanting to purchase a property.

Adrian Coles, director general of the BSA, said many often view property buyers as a single group but the Property Tracker survey has established that is not the case. While most people don’t believe now is a good time to buy, over one in four people believe the opposite.

The finding that monthly mortgage payments are currently seen as the main barrier to house purchase shows the extent to which household finances are being stretched, as well as a reflection of the increased price of risk now incorporated into mortgage rates, said Mr Coles.

Mr Coles concluded by saying that a considerable amount of respondents said that expected future falls in property prices are a reason not to buy.

Halifax and Bank of Scotland owner HBOS, has reviewed its house price fall predictions and said property values will fall by 9% this year. It had previously predicted that the fall would be a mid-single digit.

The UK’s largest mortgage lender said it now expects the number of houses sold across the country during 2008 to almost halve.