The housing market has overseen a decline in consumer confidence during the first quarter of 2025, new research from the Building Societies Association (BSA) has revealed.

According to the association’s findings, 17% of people believe now is a good time to buy a property, a decline from 20% in January. More than double this number didn’t think now was a good time to buy, with 38% disagreeing with the statement.

Although mortgage rates have started to reduce following the Bank of England’s recent base rate cuts and the expectation of more cuts to come this year, affordability of mortgage payments was still the number one barrier for those wanting to buy a home, selected by 61% of respondents. This rose to two thirds (65%) of those wanting to buy their first home.

Raising the upfront deposit was also highlighted in the research, which the BSA based on 2,164 UK adults, as a significant obstacle for most people (59%). This figure increased to 62% for first-time buyers.

The third biggest barrier for aspiring homeowners was access to a large enough mortgage, with 42% of all first-time buyers citing this as a hurdle for them.

Following the temporary increase to stamp duty thresholds ending on 31 March, 30% of the BSA’s respondents also highlighted the stamp duty tax as a barrier to buying a home, a substantial jump from January when 22% thought this was an obstacle.

“It’s not surprising that sentiment in the housing market has declined overall, with the recent changes to stamp duty meaning pretty much every house purchaser will now pay more,” commented head of mortgage and housing policy at the BSA, Paul Broadhead.

“But for first-time buyers, the extra stamp duty tax which they now need to pay is substantial and increases the already significant burden of raising the upfront costs required to buy a home.

“A thriving housing market needs first-time buyers to be able to get on the property ladder. But the prospects for many of today’s would-be first-time buyers looks increasingly challenging.

“A further bank rate cut when the MPC meets in a couple of weeks should help to improve sentiment in the housing market, but to have a meaningful impact radical changes are required.”

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