Although financial news from around the world seems to suggest that the next few years are going to be even more austere than the Government first warned, there appears to be a more upbeat attitude from the people in the UK looking to take out homeowners insurance on a property.

According to a survey carried out by the Building Societies Association (BSA) prospective homebuyers believe now is the perfect time to be investing in a property. Although 7 out of 10 said they thought it was harder than ever to get a mortgage, the rewards would be tangible if they did. And contrary to many reports we read, the young people of the UK have not given up on the idea of owning their own home. Eight out of ten said they still had ambitions to purchase a property, and four out of ten said they believed house prices would rise in the next year.

£100 a week!

They may be right because another report from online estate agents findaproperty.com suggests that property prices have been going up £100 a week throughout the year. Although it is hard to decipher whether the company are referring to asking prices or achieved sales. There is a massive difference. However, the difficulty prospective homebuyers have encountered in getting a mortgage has without doubt filtered all the way through the sector to builders, and the resultant shortage of housing will at some point affect the price people will pay.

Mortgage payments not the only worry

Of course it is not only getting a mortgage that is difficult. Although low interest rates mean that many people can pay their mortgage without too much trouble, soaring fuel prices, the cost of a home insurance quote and the uncertainty on the employment front will hold many people back from committing to a new home purchase. The housing sector has seen more than its fair share of false dawns over the last couple of years but perhaps the coming together of certain circumstances will bring a new day and a new life to the housing market.

Long way to go

Certainly some building societies are offering better loan to value deals to first time buyers but until this becomes commonplace with all of the big lenders, it is hard to see house prices getting anywhere near the 14% increase suggested by the Centre for Economics and Business Research by 2015.