2011 will be the best time to buy property in the UK, survey reveals

Considerable uncertainty remains in the UK real estate market but the public considers the best time to enter the property market to be within the next year, a new survey suggests.

The immediate outlook for the housing market remains uncertain but 43% believe it is currently a good time to buy property, while 26% think it is not and 24% have no opinion either way, according to the December 2010 Property Tracker survey from the Building Societies Association. This compares with a year ago when 58% agreed it was a good time to buy.

On average, property prices are expected to be flat next year. The median price prediction is for prices to be the same level in a year’s time, although 33% thought that prices would rise, while 36% believed prices would fall in the next 12 months.

The survey also reveals that a substantial proportion believe property remains overvalued with 38% of respondents thought that properties in their area were over priced, with 25% believing that properties were over valued by 10% or more.

However, most people would not wait long to enter the market, if they were able to. Some 59% would buy immediately or within the next year, given sufficient resources, and a further 11% would buy in the following twelve months. Some 12% would wait for two years or more. This suggests that even if prices are due to fall, most people expect them to bottom out within the next one to two years.

‘Although the housing market remains uncertain, the public does not expect house prices to fall as dramatically as they did two years ago. As such, many expect that the best time to enter the market will be in the next year or so,’ said Paul Broadhead, head of Mortgage Policy at the BSA.

‘However, barriers remain that might prevent potential buyers from acting on these perceived opportunities. Worries persist about job security, the ability to raise a deposit, and obtaining a mortgage from lenders. These factors might inhibit demand for house purchase from growing as strongly as it might,’ he added. (Dec. 17th,2010 Property Wire)