The furlough scheme may be ending tomorrow but concerns over redundancy are proving less of a hindrance to budding home buyers than before.
This is according to a newly-published survey which discovered just a third (34%) thought the risk of job loss would be a barrier to homeownership compared with 68% who were worried about redundancy this time last year.
Even three months ago a much higher proportion – 45% – thought the risk of losing their job would prevent them becoming homeowners, according to the Building Societies Association (BSA) property tracker survey.
The Coronavirus Job Retention Scheme – more commonly known as furlough – ends tomorrow, 30 September.
In late August 6% of the workforce was estimated to be either full or partial furlough which amounts to between 1.3 million and 1.7 million people, according to figures from the Office for National Statistics (ONS).
Stamp duty holiday deadline
Meanwhile 30 September also marks the end of the Stamp Duty Holiday when the ‘nil rate’ on the home buying tax reverts back to its original level.
Yet despite the end of the scheme being well in sight, the BSA said confidence remained with as many as half of the respondents (46%) expecting further price increases in the next 12 months.
Paul Broadhead, head of mortgage and housing policy at the BSA said: “These latest results are a positive sign that despite the end of some of the coronavirus support measures this month, it appears that the housing market will continue to remain buoyant.”
Energy efficiency
The BSA also discovered energy efficiency of homes was key for as many as three quarters of respondents (72%).
Asked what would encourage them to buy an energy efficient home, over half said a lower council tax rate (56%) or a cheaper energy tariff (53%). A cheaper mortgage and evidence that the energy efficient improvements would add value to the home were also strong incentives at 43% and 39% respectively.
The biggest barrier for homeowners making energy efficient improvements to their current home is meeting the initial upfront costs.
Paul added: “It’s very encouraging to see that the energy efficiency rating of a property is high on consumers’ radar when buying a new home.
“However, whilst people can recognise the tangible value of making environmental improvements, it’s disappointing that so few have actually made changes to their own property.
“If government is serious about meeting its emissions targets, more information and effective incentives are required.”
