The Woolwich yesterday released May figures on consumer confidence in the housing market.
The percentage of consumers who expect house prices to increase has soared by 11% already this year from 56% to 67%.
These figures are close to the peak levels ever recorded by The Woolwich – when in 2002 confidence peaked at 68%.
Andy Gray, head of mortgages for The Woolwich and Barclays, says: “Consumer confidence goes from strength to strength, but with further rate rises predicted in the second half of this year, we expect the rate of house price inflation to steady towards the levels seen in 2003.
“This means that consumers need to be realistic about the capital growth they can expect from their home in the immediate future, and view any purchase as a long-term investment as we expect house price inflation to be neutral by the end of 2005.”