24th April 2015
A cooling off in house prices over recent months has not dampened confidence in the property market.
The number of homeowners who think the next year will provide a good opportunity to sell has reached its highest level for four years, according to the Halifax housing confidence tracker.
According to Halifax, 59% believe now is a good time to sell, while 26% think it is not. The net balance of 33% – those believing it is a good time – is the highest recorded since the survey started in April 2011.
House prices have been rising this year but at a slower pace that 2014, and experts have said there is a shortage of homes coming to market which could once again push up prices.
This could tempt more people to put their homes on the market in coming months as they expect value to increase, even if the supply and demand is more evenly balanced.
Over two-thirds expect house prices to rise in the next year and just 3% expect them to fall.
Craig McKinlay, mortgage director at Halifax, said: ‘We’ve seen a strong start to theyear in terms of the net sentiment regarding the outlook for the housing market, and this has translated into an increase in transaction volumes.
‘This increase in optimism is likely to be the result of a combination of factors, including the improving economic figures, greater number of higher loan-to-value mortgages, and extremely competitive mortgage rates.’
Expectations for house price increases are strongest in the South East, which has benefited from buyers who have been priced out of London.
The main concerns about buying are still raising a deposit – which 61% are concerned about – and job security, worrying 44%.
Just 12% of people are worried about interest rate rises.