Consumers confident of house price rises
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Consumer confidence in the housing market has performed a U-turn since this time last year, with many now believing house prices will rise over the next year.
Research from Rightmove which compiled the responses of 32,771 consumers found that 53% of those polled believe house prices will rise this year.
Although this is a slight decrease from the 56% of consumers who predicted house prices increases in Q4 last year, the latest figure is significantly up on Q1 last year, when just 10% of respondents thought house prices were on the up.
Some 69% of those surveyed this time last year believed that house prices were set to fall.
This figure has now dropped to just 13%.
Yet many consumers are predicting a modest recovery in house prices this year rather than more dramatic increases.
The proportion of consumers that forecast house prices will rise by up to 10% is 46.8%, while just 6.7% believe prices will soar by more than 10%.
Miles Shipside, commercial director of Rightmove, says: “Given the looming election and the talk of pending austerity packages ahead, this consumer survey highlights a surprisingly positive property price outlook.”
He adds: “The property market is in a virtuous circle scenario, where consumers are seeing less property up for sale and fresh to the market property selling more quickly.
“That rightly gives them the impression that we are over the worst of the recent price falls, and that there is likely to be upward pressure on prices.”
