Brexit and the General Election result pose two of the “biggest risks” to the stability of the housing market in 2020, according to the Building Societies Association’s (BSA) quarterly Property Tracker survey.
It revealed that a rise in the cost of living and weak economic growth are also “significant perceived risks”. According to the survey, respondents were a little more “optimistic” when it came to house prices, with 28% expecting them to rise over the coming year.
However, the BSA said the biggest barrier to homeownership remains raising a deposit (62%), which is relatively unchanged from September 2019 (60%).
The survey also showed that a majority of people (77%) consider energy efficiency an important factor when buying a home.
A quarter of people think that the Government should be responsible for improving UK homes’ energy efficiency, while 42% said the responsibility lies with homeowners.
Additionally, half of homeowners said the cost presents a barrier to making improvements, with more than half (54%) saying that council tax reductions would incentivise them to make their homes more energy-efficient.
Paul Broadhead, head of mortgages and housing, said: “Political uncertainty has dogged housing market sentiment for some time, so it is unsurprising that it continues to play an adverse role.
“With a clear path still not set for Brexit, and with [the General Election] making an impact, market sentiment has remained negative since June 2017.”