Lack of suitable housing major barrier to home ownership in Scotland

The latest research from Legal & General Mortgage Club shows that 25% of people in Scotland feel that the lack of suitable housing is a major barrier to home ownership.

This echoes the sentiment in the rest of the UK, with 41% of Brits citing lack of housing as a key issue in the housing market, a figure up 11% on the data Legal & General compiled 12 months ago (30%). The research was part of Legal & General’s quarterly Mortgage Mood survey which looks at changing consumer attitudes

towards the UK’s housing and mortgage markets.

Other concerns for those in Scotland looking to buy a home were an expected rise in house prices (50%), a lack of deposit (38%) and stamp duty (25%).

Despite these concerns, 25% of consumers in Scotland feel more confident about buying today than they did a year ago. Yorkshire and Humber was found to be the most optimistic region, with 44% of people feeling better about the housing market than they did in 2012. In contrast, the South West was the least optimistic area, with no respondents citing an improved confidence and 70% saying they feel ‘about the same’ as they did last year.

Ben Thompson, MD, Legal & General Mortgage Club says:

“These figures show that certain issues persist for would-be borrowers and the market remains varied from region to region. A lack of appropriate housing stock in certain areas is becoming a major impediment to a healthy and functioning housing market and stamp duty continues to place a major hurdle in front of would-be home buyers.”

Mr Thompson continues: “The benefits of removing this prohibitive cost are clear as it will help put a check on house price inflation and allow more much needed stock to go on the market. It’s also abundantly clear that we urgently need to build more homes in the right areas to meet demand. At the moment we have a two speed housing market recovery and we must do all we can to redress any imbalance sooner rather than later.”

He concludes: “Having said that, it is clear that confidence is returning and has grown significantly since last year. This is directly attributable to initiatives such as the Funding for Lending Scheme, Help to Buy as well as an improving economic picture and can only be a welcome sign for the industry and the wider UK economy.”