House price optimism is on the up

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House price optimism is at its highest for seven quarters, Rightmove’s latest quarterly Consumer Confidence Survey of over 40,000 home-movers finds.

More than a third of respondents (35%) expect house prices to be higher one year from now, the highest level since the third quarter of 2010. The survey also finds that the proportion of those expecting house prices to be lower in 12 months’ time is also at its lowest level (20%) for seven quarters.

Miles Shipside, director at Rightmove, comments:
“While the most common view remains that property prices will be about the same one year from now, this is the most upbeat price forecast Britain’s home-movers have delivered in nearly two years. Confidence plays an important role in motivating those who can afford to buy to actually go ahead and transact. By self-selection, many of them are hunting in the same better-heeled locations which in turn builds greater momentum and price rise expectation in these more affluent areas. Conversely, lower levels of activity in less well-off areas spreads negative sentiment fuelling falling price confidence.”

To view the full report click here.

4 Responses to “House price optimism is on the up”

  1. David Says:

    I believe the biggest problem in the property market is articles such as this,the facts are that property prices have risen too far over the rate of inflation. An average property price of say 6 to 7 times inflation is not sustainable. It is understandable that when someone buys a property that they don’t want to sell it for a lesser price BUT the market will only move if prices tumble, as they have in the US, prices must bottom out. There must be plenty of potential purchasers of realistic priced property, another 30+% drop would see the property market moving again, estate agents and associated businesses would see positive business again. Of course people who multi bought property to rent (because prices don’t fall!!!!, how could any sensible person believe that)may lose out, dependant on when they bought.
    I have never seen a good explanation for some of these figures, if there were only 100 sales in a month and these were £1.5m properties reduced to £1m, would the average sale for the month be £1m, that would be great headlines property market prices up 300%. I’ve just had to give my sons £50k as deposits for property, Spain is now finding more hidden debt and there must still be billions of debt in the UK that we have not been made aware of, probably why everything is being done to keep interest rates low, us poor pensioners always lose out

  2. Roger Hill Says:

    When knock on effect of problems we face from Europe take effect, it is my opinion that house prices are likely to drop as recession takes a firmer hold, and the first time buyer finds it more and more difficult to get a foot on the ladder.

  3. L Bodica Says:

    There are thousands of reposessions being artificially stalled to avoid negative publicity and to maintain a ‘feelgood’ summer for the visitors. The lenders are probably reluctant to repossess around Christmas, for same reason….. but next year……..don’t hold out for many buyers as many jobs cutting programmes have barely started.

  4. DC Says:

    One of the biggest stumbling blocks the housing market is currently facing is the difficulty many potential house buyers are still having in obtaining a mortgage. To add fuel to the fire the interest rates that lenders are charging, over and above the Bank of England rate, are so disproportionate as well. There are many people in the UK that want to buy, have found a suitable property at a price that suits them and in most cases have enough cash to put down for the deposit but often do not fit the lenders’ criteria. This points to the fact that house prices ARE affordable but money borrowing is too constrained. Without going back to the recent era of the high-risk lending antics of the pre house price crash the mortgage market really needs a kick up the pants. Why isn’t the government or the Bank of England doing more to influence what is basically a monopoly, which in turn is having a bad effect on the recovery of the UK’s economy in general?

    The current negativity of money lending is also having a major effect on the rental sector. More and more people have to consider renting, which due to supply and demand is driving up rental costs. Also exacerbating this problem is the fact that new rental housing is not becoming readily available for the same reasons mentioned above. Those willing to provide rental housing i.e. current and prospective landlords are also finding it difficult to buy further properties to offer to the rental market because they are being turned down by the money lenders as well. Even those who wish to remortgage existing properties to raise capital to purchase further rental stock are failing too. This phenomenon can only go so far before something gives. The UK depends heavily on its private rental market as it is desperately short by at least 2 million homes. This shortage and the knock-on effect of ever increasing rental costs is a major contributor to the UK’s inflation, so again, I ask why isn’t the government being a lot more proactive and addressing this situation sooner rather than later?

    The other major problem the housing market has is ill-informed estate agents! On the surface of it we are all witnessing reductions in asking prices, which echoes a lot of people’s views that the market is sliding towards a crash once again but a lot of this I blame on estate agents who either are not being blunt enough with vendors about true values or the estate agents themselves who are not in the real world and will not be realistic about house prices themselves. Placing properties on the market at ridiculously over inflated prices is still going on, certainly in the north of Cambridgeshire where I live and then to watch these property prices tumble over the following months has such a divisive and damaging effect on the market in general. It causes worthless statistics, rumours and doubt and eventually undermines the whole housing market in that particular area. Put properties on the market at their true value and they will sell within weeks. It works! And it stabilises the market and brings back confidence and all of a sudden the whole thing slowly starts to move again.

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