Confidence dips among potential property purchasers

Residential landlords who are looking to add to their property portfolios could be among those who are hesitant to enter the market.

According to a recent report from the Building Societies Association (BSA), just 49 per cent of potential buyers feel that now is a good time to purchase a home.

This compares to the healthier figure of 58 per cent recorded in December 2009.

Despite the hesitation, the BSA report also revealed that people believe 2010 will see property prices rise by 2.2 per cent.

According to the organisation, potential buyers are biding their time to see the outcome of the forthcoming general election.

Paul Broadhead, head of mortgage policy at the BSA, said: "It is no surprise that people are uncertain if now is a good time to buy property.

"Potential buyers will be waiting to see the effect on the property market of the end of the stamp duty holiday, [while] the forthcoming budget and general election provide further levels of uncertainty to potential homebuyers."

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