Only 10% of people in the East believe it’s a good time to buy a house
That's according to the Building Societies Association
People across the East are struggling to buy houses, with 66% of people saying the affordability of mortgage repayments is the biggest obstacle to buying a property.
That's according to the latest report from the Building Societies Association.
Previously, the organisation says saving up for a deposit was considered the main issue when looking into property, but it suggests that with mortgages going up in price, many are having to reconsider what they can afford.
Only 10% of people in the East of England believe it’s a good time to buy a residential property in the UK.
Overall confidence in the housing market has also plummeted.
The BSA report describes it as a 'perfect storm' due to the combination of house prices going up, soaring mortgage rates and rapidly rising essential living costs:
"There has been a significant shift in the number of people who think that house prices will fall in the next 12 months since the last quarter – up from 35% to 49%.
"This compares to those who think they will rise. One in ten (9%) are worried about the value of their home falling."
Homeowners vs Renters
The BSA report continues: "Over the last year, Property Tracker has revealed that people have become less confident about their ability to pay their mortgage or rent over the next six months.
"The vast majority (87%) of mortgage borrowers are not expressing concern about keeping up with their mortgage payments.
"This is likely to be because over 80% are on fixed rates and therefore it will take time for higher mortgage costs to be felt by many.
"Unsurprisingly, however, renters are less confident, with around a quarter (23%) concerned about meeting their housing costs"
We spoke to Paul Broadhead, Head of Mortgages and Housing at the BSA:
"We're also starting to see some modest house price falls in some areas, which of course for many first-time buyers will be welcome.
"But the challenge we face is we talk about the housing market as if it's just one open marketplace, but of course, there are regional factors as well.
"Depending on the employment in a particular region, (that) impacts the demand for homes in that region, which then has that knock-on effect on prices."
Paul also told us what people should do when looking for a new property:
"The best thing people can do is either speak to a mortgage lender or a mortgage broker just to understand what's possible.
"What deposit they've got, how much they're able to borrow and what kind of house they might be likely to purchase.
"The other thing people can be doing is making sure they're managing their income and expenditure well, because the bank and building society will need to look at what people's spending is like to assess how much they can afford to pay."
He also told us people shouldn't wait to see if house prices will drop.
"We often talk about house prices and people buying houses as an investment, whereas for the vast majority of people it's going to be a place where they are going to live and raise a family for the forseeable future.
"So the important thing is, actually if you're in a position to buy and you find that right property, and you can afford it, is just get on and do that because actually that's the best thing for you rather than trying to call the market."