Mortgage finance availability leads to optimism

A perceived increase in the availability of mortgage finance has led to cautious optimism in the property market, according to the Building Societies Association (BSA) Property Tracker survey.

The survey revealed that nearly 60% of people believe now is a good time to buy a property. Access to a mortgage was viewed as a barrier to buying by only 49% of people, a drop from 55% in June and 58% in March.

Respondents expect property prices to rise by 1.6% over the next year.

However the lack of job security remained the most significant barrier to a property purchase and was chosen by 58%. This could be a critical influence on the confidence of house buyers with unemployment forecast to rise into 2010.

Paul Broadhead, head of mortgage policy at the BSA, said home buyers are increasingly viewing the property market in a positive light.

He added: "The majority of respondents believe now is a good time to buy. With mortgage availability perceived to be increasing, prospective buyers are more confident of securing funding to purchase a property."