"It’s not surprising that sentiment in the housing market has declined overall, with the recent changes to stamp duty meaning pretty much every house purchaser will now pay more"
- Paul Broadhead - BSA
Newly released data from the Building Societies Association (BSA), reveals a decline in consumer confidence in the housing market. Just 17% of people agree now is a good time to buy a property, a decline from 20% just three months ago (Jan 2025). More than double this number didn’t think now was a good time to buy, with 38% disagreeing with the statement.
Barriers to buying a home
Although mortgage rates have started to reduce following recent Bank Rate cuts and the expectation of more cuts to come this year, affordability of mortgage payments still remains the number one barrier for those wanting to buy a home, selected by 61% of respondents. This rises to two thirds (65%) of those wanting to buy their first home.
Raising the upfront deposit is also highlighted as a significant obstacle for most people (59%), increasing to 62% for first-time buyers.
The third biggest barrier for aspiring homeowners is access to a large enough mortgage, 42% of first-time buyers citing this as a hurdle for them.
Unsurprisingly, as the temporary increase to stamp duty thresholds ended on 31 March 2025, 30% have highlighted the stamp duty tax as a barrier to buying a home, a substantial jump from January 2025 when 22% thought this was an obstacle.
Job security is also starting to nudge up as an obstacle to buying a home. 26% highlighted this, which is a significant increase on the proportion who said it was an issue six months ago (21% in Sep 2024).
House prices
Whilst house price inflation appears to be stable, at an annual rate of around 4%, 46% of respondents expect prices will continue to rise in the next 12 months, with just 13% thinking prices will fall.
“The biggest concern from the latest Property Tracker results is the clarity it provides on the affordability issues faced by first-time buyers, " said head of mortgage and housing policy at the BSA, Paul Broadhead, "Many feel that the dream of homeownership is clearly nothing more than that, a dream, particularly those not fortunate enough to have family who can provide financial support."
“It’s not surprising that sentiment in the housing market has declined overall, with the recent changes to stamp duty meaning pretty much every house purchaser will now pay more. But for first-time buyers the extra stamp duty tax which they now need to pay is substantial and increases the already significant burden of raising the upfront costs required to buy a home.
“A thriving housing market needs first-time buyers to be able to get on the property ladder. But the prospects for many of today’s would-be first-time buyers looks increasingly challenging.
“A further Bank Rate cut when the MPC meets in a couple of weeks should help to improve sentiment in the housing market, but to have a meaningful impact radical changes are required.
He added, “A starting point must be improving the balance between housing supply and demand. The government has set an ambitious target for building more homes, with some bold statements on planning processes. But we now need action, not words – more homes that are more affordable and more appropriate to the needs of those living in them.
“Alongside this regulation must be adapted to enable lenders to address the barriers facing first-time buyers. This is under-review, but we need bold and quick action if we are to avoid a growing generation of lifetime renters.”
