Rightmove Property Blog » home-movers

Rightmove sustains early 2013 traffic

clairep — Tue, 26 Feb 2013 10:51:21 +0000

Home-movers are continuing to search and research Rightmove in record numbers this year as the spring market approaches.

Rightmove climbed to sixth place in Experian Hitwise’s weekly rankings of the UK’s busiest websites over the first two weeks of January and latest figures reveal that this was much more than a typical post-Christmas surge. Levels of interest and activity in property have been sustained well into February, helping to drive record levels of enquiries to Rightmove member agents.

Traffic activity to February 12^th set new records with more than 1.7 billion pages viewed across Rightmove over the first six weeks of 2013[i], up more than 20% on the same period last year. It is this sustained level of interest that has seen Rightmove record its busiest ever month and helped secure sixth spot in Experian Hitwise’s rankings for the whole month of January.

Rightmove director Miles Shipside comments:
“It’s hugely encouraging to see Rightmove’s January traffic is being sustained. This means we have been able to put Rightmove member agents in front of more home-hunters than ever before at this time of year and help them ‘prime the pump’ ahead of the spring market. Many agents and developers are telling us they have already got a promising level of deals under their belt.”

The Experian Hitwise report for January shows Rightmove ahead of the likes of Yahoo, Bing, and BBC News in sixth place on the list of busiest websites for British users by pages viewed. Only Amazon, eBay, YouTube, Google and Facebook lie ahead in the rankings. Key to the sustained level of activity has been the continued growth of Rightmove’s mobile platforms, including iPhone, iPad and Android apps. Collectively, nearly 500 million pages were viewed on Rightmove’s mobile platforms over the first six weeks of the year.

Rightmove director Miles Shipside comments:
“It’s great to see the investments we are making result in such a strong start to the year and help agents and developers reach potential home-movers in record numbers. However, we’re well aware that the most important thing for our members is that this record traffic continues to convert into enquiries and, as we revealed in our HPI last week, we’re pleased that January represented our best month ever for calls and emails to advertisers on Rightmove.”

Home-movers believe prices are still above ‘fair and reasonable’ levels

clairep — Sun, 13 May 2012 10:58:19 +0000

Although the proportion of home-movers expecting house prices to increase is at its highest since autumn 2010, many feel property values in their local area are pricey.

Nearly half (46%) of those surveyed in Rightmove’s Q2 Consumer House Price Forecast stated they feel property prices in their local area are above fair and reasonable levels.

Miles Shipside comments:
“In spite nearly half of people stating they think property prices are top heavy in their local area, the overwhelming view is that property prices will be the same or higher in a years’ time. Those that are active in the market are perhaps looking in the better areas so their view is likely to be influenced by more buoyant conditions in cash rich locations. The less active deposit-poor areas will be those where prices will have to be dropped if a seller is keen to sell.”

View the full report here.

House price confidence is strongly influenced by mortgage-related factors

clairep — Fri, 11 May 2012 15:51:37 +0000

The extent to which the mortgage market can influence house-price confidence is highlighted in Rightmove’s Q2 Consumer House Price Forecast.

Rightmove found that 35% of home-movers expect prices to increase over the next 12 months and 20% expected prices to fall, however when the respondents were asked to explain the main reason for their price predictions both groups cited mortgage-related issues. Among the price-optimists, 35% report an improving mortgage market and a further 14% identify continued low interest rates as the main reason for their view that prices will be higher 12 months from now. Mortgage-related concerns are even more prevalent amongst price pessimists with nearly two-thirds (64%) collectively citing the following reasons for their negative price outlook: little or no improvement in mortgage availability (33%), high deposits required by lenders (16%) and fear of interest rates rising (15%).

Miles Shipside comments:
“The mortgage market continues to occupy home-movers’ thoughts and there is evidence here that house price confidence is steered by their interpretation of mortgage availability. How you read it, which probably depends on whether you are ‘included’ or ‘excluded’ as mortgage-worthy by the lenders, seems to determine what you think will happen to prices. Those with larger deposits will naturally have a more positive interpretation of access to finance and, therefore, prices.”

To view the full report click here.

House price optimism is on the up

clairep — Fri, 11 May 2012 10:06:57 +0000

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.

NewBuy – boost for home-movers who need it most

clairep — Mon, 12 Mar 2012 10:37:59 +0000

The Government-backed NewBuy scheme, which has been launched today, will provide a major housing market boost for the buyer groups who need it most, according to research into the effectiveness of the scheme by Rightmove.

Our research finds that just under two in every five first-time buyers state that the introduction of NewBuy means they are more likely to get on the housing ladder over the next 12 months.

Rightmove surveyed over 2,750 potential buyers on their awareness of NewBuy and how the scheme will affect them. Amongst buyers who are looking to buy for the first time, 38% stated they would be more likely to purchase a home over the next 12 months once the scheme is launched. The scheme also looks set to benefit ‘second-steppers’ - those looking to sell and trade up for the first time – with 24% of this group stating they would be more likely to purchase over the next 12 months.

Rightmove director Miles Shipside comments:
“NewBuy looks set to give a significant housing boost to the fortunes of those who need it the most. We’ve found that raising a deposit has long been the major obstacle for those looking to purchase a new home at the foot of the housing ladder. NewBuy helps address this challenge, and we’ve found that the knock-on effect is that, as of today, nearly two in five first-time buyers will be more likely to get on the housing ladder via thanks to this initiative.”

NewBuy is a joint industry and Government initiative which aims to help home-buyers who may have found themselves unable to move up, or step onto, the housing ladder to secure up to a 95% Loan-to-Value mortgage on new build properties from participating builders in England.

Shipside adds:
“First-time buyers and second-steppers have long been frustrated in their efforts to get onto or move up the housing ladder by prohibitive deposit requirements. Four out of ten first-time buyers cited ‘raising enough of a deposit’ to be their single biggest housing market concern in our recent First-Time Buyer Report. NewBuy opens the door to these groups and can also serve as a great stimulus to help safeguard and create jobs in the new build property sector.”

Look out for Rightmove’s NewBuy homepage launching soon.

Tenants expecting rents to increase

clairep — Tue, 31 May 2011 14:25:05 +0000

Rightmove’s latest Consumer Confidence Survey finds that nearly half (49%) of current tenants are of the opinion that average rents will be higher 12 months from now, providing more evidence of the continued strength of the rental sector. Whilst excellent news for landlords, the outlook for concerned tenants is darkened further by new analysis from Rightmove that confirms the continued supply and demand imbalance, with rental search activity up by two-thirds in the last two years whilst available stock is down by nearly a quarter over the same period.

Miles Shipside, director of Rightmove, comments: “Further rent rises appear to be looming for many, putting additional upwards pressure on the cost of living for tenants in these inflationary times. With such fierce competition for a dwindling stock of properties, those tenants that can play the trump cards of offering the highest rent and quality references will be best-placed to win the hand and secure the keys to the home they want.”

The proportion of tenants in this quarters’ survey predicting higher rents in 12 months’ time is 49%, with 15% of those anticipating rents to go up by 10% or more. Whilst marginally down on the 53% reported in the first quarter of this year, it continues the theme of increased landlord pricing power which tenants in our survey started to foresee two years ago. The cause of this upwards price pressure on rents, in terms of both tenant expectation and market reality, is most clearly demonstrated by a simple analysis of supply and demand over that period. Search requests for rental property are up by 64 percentage points compared with April 2009 whilst available rental property advertised on Rightmove has fallen by 23 percentage points over the same period. This imbalance between supply and demand has clearly not been helped by the on-going restrictions on mortgage lending which have decimated the number of buyers able to purchase, as well as hindering the ability of landlords to make investments. The result is that Rightmove’s Consumer Confidence Survey has recorded tenants forecasting higher rents nearly doubling from a base of 27% just two years ago.

Shipside comments: “Tenant competition in many locations is hot, partly as many tenants are staying in their current rented accommodation for longer, whilst less new stock becomes available. We see some new supply relief on the horizon in locations where capital values are low and rental yields are compelling enough to entice new landlords who are able to secure the necessary finance. However, this new supply to the market takes time to come through and is likely to be insufficient to meet demand.”

Prospective first-time buyer levels at their highest for 12 months in Wales

clairep — Mon, 23 May 2011 15:20:24 +0000

Rightmove’s most recent Consumer Confidence Survey has revealed some encouraging news that prospective first-time buyer levels are now at their highest for 12 months.

Each quarter Rightmove records the proportion of people who intend to buy over the next year who state they will be doing so for the first time. The Q2 survey found that 22.3% of people purchasing a home over the next 12 months in Wales will be first-time buyers, the highest level since the same period last year and an increase of almost 4% on Q1. Although first-time buyers numbers remain down on traditional levels, the upturn offers an encouraging sign that things may be improving.

Rightmove director Miles Shipside comments: “The long term health of the housing market has depended on around 40% of purchasers being first-time buyers, so with the figure hovering just above a quarter it means overall market volumes look set to remain muted. However, a jump of nearly 4 percentage points over the past quarter is a move in the right direction and a welcome sign that more first-time buyers in Wales feel the next 12 months will be the time for them to buy.”

The rise in the proportion of first-time buyers who look set to enter the property market in the next 12 months coincides with an increase in those expecting house prices to be higher over the same time period. Nationally, Rightmove’s Q1 2011 survey found that 21.9% of first-time buyers expected house prices to rise over the following year. This quarter the proportion of those expecting prices to be higher in 12 months’ time has jumped to 33.3%, indicating that many first-time buyers may be choosing to take the plunge and purchase their first home sooner rather than later before prices increase.

Shipside adds: “This quarter’s survey appears to indicate more first-time buyers are calling the bottom of the market. A significantly higher proportion of them now believe prices are set to increase over the next 12 months and so they are perhaps looking to enter the property market in greater numbers before their affordability deteriorates.”

For the second consecutive quarterly survey first-time buyers expressed that their single biggest concern in the property market is raising enough of a deposit to purchase. The proportion of those expressing this view remained the same as our Q1 survey at 44%, twice has high as the second highest concern which was finding a property to buy.

Shipside adds: “It is no surprise that raising enough of a deposit continues to be the major concern for first-time buyers, and more needs to be done to assist them on this front. Initiatives such as FirstBuy are a step in the right direction, although it is limited to just new build property which doesn’t assist the wider resale market. Encouragingly, our survey found that just under 40% of prospective first-time buyers stated they would be more likely to buy a new build property as a result of this scheme.

London first-time buyer levels remain high

clairep — Mon, 23 May 2011 15:17:02 +0000

Rightmove’s most recent Consumer Confidence Survey has revealed some encouraging news that first-time buyer levels in the capital remain are remaining high.

Each quarter Rightmove’s records the proportion of people who intend to buy over the next year who state they will be doing so for the first time. The Q2 Consumer Confidence Survey found that nationally 26.2% of buyers over the next 12 months will be first-time buyers, the highest level since the same period last year and an increase of almost 4% on Q1. In London the proportion was far higher with 42% of buyers stating they would be purchasing for the first time, an increase from 38.2% in Q1.

Rightmove director Miles Shipside comments: “The long term health of the housing market has depended on around 40% of purchasers being first-time buyers, so with the national figure hovering just above a quarter it means overall market volumes look set to remain muted. However, London first-time buyer levels are hitting the desired 40% mark thanks to greater wealth in the capital. This will greatly assist transaction numbers and lead to a far more active property market in London.”

Prospective first-time buyer levels at their highest for 12 months

clairep — Mon, 23 May 2011 14:36:21 +0000

Rightmove’s most recent Consumer Confidence Survey has revealed some encouraging news that prospective first-time buyer levels are now at their highest for 12 months.

Each quarter Rightmove records the proportion of people who intend to buy over the next year who state they will be doing so for the first time. The Q2 survey found that 26.2% of buyers over the next 12 months will be first-time buyers, the highest level since the same period last year and an increase of almost 4% on Q1. Although first-time buyers numbers remain down on traditional levels, the upturn offers an encouraging sign that things may be improving.

Rightmove director Miles Shipside comments: “The long term health of the housing market has depended on around 40% of purchasers being first-time buyers, so with the figure hovering just above a quarter it means overall market volumes look set to remain muted. However, a jump of nearly 4 percentage points over the past quarter is a move in the right direction and a welcome sign that more first-time buyers feel the next 12 months will be the time for them to buy.”

The rise in the proportion of first-time buyers who look set to enter the property market in the next 12 months coincides with an increase in those expecting house prices to be higher over the same time period. Rightmove’s Q1 2011 survey found that 21.9% of first-time buyers expected house prices to rise over the following year. This quarter the proportion of those expecting prices to be higher in 12 months’ time has jumped to 33.3%, indicating that many first-time buyers may be choosing to take the plunge and purchase their first home sooner rather than later before prices increase.

Prospective first-time buyer levels at their highest for 12 months as more call ‘bottom of the market’

sarahbrown — Wed, 11 May 2011 14:18:47 +0000

Highlights this quarter:

	Proportion of intending first-time buyers reaches highest level for 12 months at 26.2% Big jump in first-time buyers expecting house prices to increase - one in three now expect to pay more to buy a home over the next 12 months, up from one in five last quarter Raising a deposit remains the major issue with 44% of first-time buyers citing this as their single biggest property market concern

Rightmove’s quarterly survey of intending first-time buyers gives an early view of activity and sentiment at the very important base of the property ladder. The proportion of people that are intending to buy in the next 12 months that will be doing so for the first time is the highest we have recorded for four quarters, seemingly driven by the sense from a growing percentage of this group that property prices will be higher in a year’s time.

Miles Shipside, director of Rightmove, comments: “Despite prospective first-time buyers still being frustrated by deposit-hungry lenders and stifled by sellers unwilling to reduce their prices, this survey forecasts an upturn in their activity in the next 12 months. As they closely scour what’s available in their local markets, this is perhaps driven by their sense that the deals on properties to buy and mortgage funding criteria are not going to improve and so more have simply accepted these conditions and decided to act. Indeed, there is a large shift of opinion amongst would-be first time buyers that prices may well have bottomed out and could be higher in some areas in a year’s time.”

In this quarter’s survey, 26.2% of those that say they intend to buy within the next 12 months state that they will be buying for the first time. This is the highest figure we have recorded since Q2 2010, when the proportion was marginally bettered at 26.3% and is up on the 22.8% recorded in last quarter’s survey.

Download the full May 2011 First-Time Buyer report now, for all the latest regional facts and figures

House prices overvalued say consumers, but just 1 in 4 forecasts a fall

sarahbrown — Wed, 27 Apr 2011 09:42:48 +0000

• Proportion of ‘price pessimist’ consumers expecting house prices to drop in the next 12 months falls back from 1 in 3 to 1 in 4 this quarter
• However, over-valuation now emerging as a major issue as around half of the UK believes prices in their local area to be too high
• 7th consecutive quarterly increase in those expecting prices to stay the same, now up to 40%, indicates a period price stagnation
• Economic recovery and return of mortgage finance seen as critical to housing recovery

Rightmove’s second Consumer Confidence Survey of 2011 reveals a drop in the proportion of people expecting house prices to fall over the next year. Rightmove surveyed the housing market sentiment of over 26,000 people and has found that the proportion of those expecting prices to fall has fallen from 32.3% to 24.9%. However, a further finding of the survey was that across the UK consumers feel prices in their local area are over-valued and need to come down.

Rightmove director Miles Shipside comments: “Our Q1 survey measured the highest proportion of home movers recorded to date forecasting that prices would be lower in 12 months’ time. That was the position of a third of them then, but now that proportion sharing that view has dropped to a quarter.”

Each quarter for the past two years Rightmove have charted whether the home-moving public believe prices will increase, decrease or stay around the same. For this latest survey the public were also asked whether they believed prices in their area were overvalued, undervalued or about right. The results reveal that just under half (48%) of respondents believe prices in their local area are over-valued, with just 15% of the opinion that they are too low. In London (60.8), the South East (51.7%) and the South West (52.7%) the proportion of those feeling prices were overvalued were in the majority.

Shipside adds: “There is a growing sense that many homes coming onto the UK housing market are priced too high and this is borne out by the views expressed in this survey. We now have a situation where half of the UK public feel house prices are too high, yet three quarters of the same public are expecting prices to either stay the same or increase over the next 12 months. This suggests the prospect of a market stand-off and rising unsold stock levels if sellers don’t wise up to the house price views of their target market.”

Rightmove’s most recent House Price Index found that unsold stock levels saw their biggest jump for four years in April, from 70 to 74 properties per estate agency branch, despite new sellers increasing their asking prices by 1.7% in the same month. This suggests a clear mismatch between seller expectations and what buyers are willing to spend, and this view is further highlighted when local market value opinions are broken down into home-mover categories. Only 34.6% of respondents to Rightmove’s survey who intend to sell a property over the next year felt properties in their area were over-valued, significantly lower than the national average of 48%. Of those intend to buy, 45.8% felt local properties were over-valued and the figure jumps to a huge 66% for first-time buyers.

The proportion of respondents forecasting that prices will remain about the same has grown for the 7th consecutive quarter. They now number 40%, up from 38% the previous quarter and up from the 32% measured a year ago. This trend suggests that prices will level out rather than increase of the next 12 months.

Shipside comments: “The biggest proportion in our survey, 4 out of 10, think we are through the worst and expect a period of price stagnation, rather than rises and falls 12 months out. It’s not exciting for those owner occupiers hoping for their bricks and mortar investment to grow, but a sign of a sense of realism that the roof over your head is a home rather than a wealth play. Individuals circumstances vary and this recession has affected the less wealthy demographic sectors that exist in every region, so sentiments are mixed depending on how hard you have been hit, with some local markets having been really clobbered”.

Reasons for the more optimistic move in the main seem to be a feeling that the economy would be improving (54%), though those in the price pessimism camp felt that deteriorating mortgage availability was becoming a bigger issue, jumping from 12% last survey to 23% this.

Home is where the heart is for first-time buyers as three quarters now buy as a couple

clairep — Mon, 14 Feb 2011 15:55:35 +0000

First-time buyers are coupling-up in increasing numbers in order to meet the costs of home ownership and get their foot on the property ladder. Rightmove’s Q1 2011 Consumer Confidence Survey found that 72.5% of first-time buyers will purchase as a couple over the next year, a figure that has leapt up by over 10% in the past 18 months from 62.1% in Q4 2009. Over the same period the number of purchasers buying alone has fallen from 32.7% to 25.5%. The results mean it looks like those first-time buyers who are lucky in love this Valentine’s Day are also the more likely to get on the property ladder.

Rightmove director Miles Shipside comments: “They say that home is where the heart is, and finding love seems to be the only path available for many of today’s generation of first-time buyers as mortgage lending and the economic downturn mean that buying alone is becoming less viable. While lenders so far haven’t budged in finding solutions for first-time buyers, it is the buyers themselves that are adjusting to market conditions by coupling-up in their pursuit of home ownership.”

These results are taken from Rightmove’s Q1 First-Time Buyer report which is released tomorrow (Tuesday 15^th February), revealing the level of first-time buyers in the current property market. The report coincides with the Government’s mortgage lending summit on first-time buyers to explore how the main mortgage lenders can assist this buyer group. First-time buyers play an important role in the property market and many will be hoping that action can be taken to help this group into home-ownership.

Shipside adds: “The desirable level of first-time buyers for a healthy market is typically around 40% of all buyers, almost double the current level, as they perform a vital function in completing chains and aiding fluidity throughout the housing ladder.”

These results are taken from Rightmove’s Q1 First-Time Buyer report whic

h is released tomorrow (Tuesday 15^th February), revealing the level of first-time buyers in the current property market. The report coincides with the Government’s mortgage lending summit on first-time buyers to explore how the main mortgage lenders can assist this buyer group. First-time buyers play an important role in the property market and many will be hoping that action can be taken to help this group into home-ownership.

UK home-movers confident of price recovery by 2011

clairep — Tue, 17 Aug 2010 15:06:41 +0000

The latest Rightmove Consumer Confidence Survey finds that the proportion of people that expect prices to be higher one year from now has dropped from 50% to 41% since last quarter. This view, taken from more than 20,000 prospective home-movers, comes against a backdrop of Rightmove reporting new sellers’ average asking prices falling month-on-month for the first time this year. Despite a combination of factors exerting downward pressure on prices during the second half of 2010, overall a bullish majority of 75% believe that prices will either be the same as now or higher by July 2011. This has fallen back from the 83% recorded in our April survey, however.

The results are taken from responses to our regular quarterly question - “Where do you think average house prices will be one year from now?” – providing a first major insight into the property market outlook of potential home-movers since the change in government and announcement of austerity measures.

Miles Shipside, commercial director of Rightmove, comments: “A 9% drop in people expecting prices to be higher in a years’ time is a significant shift. However, three-quarters of people still believe that prices will either be the same or higher in 12 months’ time, indicating expectations of price stability in the medium-term. This suggests that either the Government cuts have not yet bitten hard enough to knock the inherent belief in property as a long-term safe-bet, or that there is a strong sense that the property market’s ‘dark days’ are behind us”.

Overall the survey indicates a degree of confidence that the new Government’s austerity measures will be bearing fruit in a years’ time. The medium-term view of the majority of respondents appears to be that by next summer the immediate concerns of property oversupply, mortgage famine, and the personal financial pain of the recovery process, will have eased. However, one in five believe prices will fall over the next year, and this ‘nervy minority’ has increased from one in eight last quarter.

Shipside adds: “The ‘price-optimists’ still out-number the ‘price-nervy’ by two to one, but with austerity measures starting to bite, a growing nervousness is to be expected. Given that house prices are anticipated to fall in the second half of 2010, it is reassuring that a bullish 75% believe that house prices will recover to be the same or higher by the summer of 2011. This is largely dependent on the return of mortgage availability which, unfortunately for frustrated would-be home-movers, may prove to be a longer game than they anticipate”.

Confidence levels across each region appear broadly similar this quarter. Respondents in East Anglia, where new sellers’ average asking prices are currently -1.4% year-on-year, are the most confident of higher prices (45.3%). Scotland, East Midlands and the South East also showed higher confidence levels than the rest of the UK. For the second successive quarter London sees the greatest proportion forecasting lower prices (23.3%).

Home-movers in Wales confident of price recovery by mid-2011

clairep — Tue, 17 Aug 2010 14:55:45 +0000

The latest Rightmove Consumer Confidence Survey finds that the proportion of people in Wales expecting prices to be higher one year from now has dropped from 50% to 35% since last quarter. This view, taken from 723 prospective home-movers in the region, comes despite a combination of factors exerting downward pressure on prices during the second half of 2010. The majority remain bullish with 72% of respondents reporting that prices will either be the same as now or higher by July 2011, falling back from the 84% recorded in our April survey.

The results are taken from responses to our quarterly question - “Where do you think average house prices will be one year from now?” – providing a first major insight into the property market outlook of potential home-movers in Wales since the change in government and announcement of austerity measures.

Miles Shipside, commercial director of Rightmove, comments: “A 15% drop in people expecting prices to be higher in a years’ time is a significant shift. However, around three-quarters of people in Wales still believe that prices will either be the same or higher in 12 months’ time, indicating expectations of price stability in the medium-term. This suggests that either the Government cuts have not yet bitten hard enough to knock the inherent belief in property as a long-term safe-bet, or that there is a strong sense that the property market’s ‘dark days’ are behind us”.

Overall the survey indicates a degree of confidence that the new Government’s austerity measures will be bearing fruit in a years’ time. The medium-term view of the majority of respondents appears to be that by next summer, the immediate concerns of property oversupply, mortgage famine, and the personal financial pain of the recovery process, will have eased. However, 22% actually believe prices will be lower one year from now, though this ‘nervy minority’ has increased from 11% last quarter.

Shipside adds: “The ‘price-optimists’ still out-number the ‘price-nervy’ by three to two in Wales, but with austerity measures starting to bite, a growing nervousness is to be expected. Given that house prices are anticipated to fall in the second half of 2010, it is reassuring that a bullish 72% believe that house prices will recover to be the same or higher by the summer of 2011. This is largely dependent on the return of mortgage availability which, unfortunately for frustrated would-be home-movers, may prove to be a longer game than they anticipate”.

Confidence levels across the Wales appear broadly similar this quarter with respondents in Cardiff the most confident of higher prices in 12 months’ time (39.1%).

Home-movers in Greater London confident of price recovery by mid-2011

clairep — Tue, 17 Aug 2010 14:38:00 +0000

The latest Rightmove Consumer Confidence Survey finds that the proportion of people in Greater London expecting prices to be higher one year from now has dropped from 53% to 43% since last quarter. This view, taken from 2,591 prospective home-movers in the region, comes despite a combination of factors exerting downward pressure on prices during the second half of 2010. The majority remain bullish with 72% reporting that prices will either be the same as now or higher by July 2011, falling back from the 82% recorded in our April survey.

The results are taken from responses to our quarterly question - “Where do you think average house prices will be one year from now?” – providing a first major insight into the property market outlook of potential home-movers in Greater London since the change in government and announcement of austerity measures.

Miles Shipside, commercial director of Rightmove, comments: “A 10% drop in people expecting prices to be higher in a years’ time is a significant shift. However, 72% of people in Greater London still believe that prices will either be the same or higher in 12 months’ time, indicating expectations of price stability in the medium-term. This suggests that either the Governmentcuts have not yet bitten hard enough to knock the inherent belief in property as a long-term safe-bet, or that there is a strong sense that the property market’s ‘dark days’ are behind us”.

Overall the survey indicates a degree of confidence that the new Government’s austerity measures will be bearing fruit in a years’ time. The medium-term view of the majority of respondents appears to be that by next summer, the immediate concerns of property oversupply, mortgage famine, and the personal financial pain of the recovery process, will have eased. However, 23% actually believe prices will be lower one year from now, though this ‘nervy minority’ has increased from 14% last quarter.

Shipside adds: “The ‘price-optimists’ still out-number the ‘price-nervy’ by around two to one in Greater London, but with austerity measures starting to bite, a growing nervousness is to be expected. Given that house prices are anticipated to fall in the second half of 2010, it is reassuring that a bullish 72% believe that house prices will recover to be the same or higher by the summer of 2011. This is largely dependent on the return of mortgage availability which, unfortunately for frustrated would-be home-movers, may prove to be a longer game than they anticipate”.