55pc of homeowners expect house price rises

Yuan Phoon

January 11, 2012

British homeowners predicted house price growth would be 2.2% over the next six months, down from 2.7% predicted over the past three months.

In October, 59% of homeowners surveyed by Zoopla said they expected house prices to rise over the following quarter.

Figures from Halifax’s December house price index revealed that house prices dropped 0.1% in the three months to December.

Only 24% of homeowners said they expect the value of their own property to fall over the coming six months whilst 29% expect house prices in their area to fall.

London homeowners were more optimistic about the housing market with 72% of Londoners expecting average values in the capital to rise over the next six months, up from 68% last quarter.

Owners in the capital now predict property prices to grow by 4.7% over the first half of 2012.

Nearly half, 48%, felt the key sign that the property market is improving would be when mortgage availability improves.

However only 11% of the homeowners surveyed by Zoopla said they felt it was now easier to get a mortgage than it was three months ago.

Nicholas Leeming, director at Zoopla, said: “There is a lot of general economic uncertainty at the moment which is taking its toll on homeowner confidence.

“Until there is some good news on the overall economy, homeowners will continue to be cautious with their optimism for the property market.

“Londoners, however, are living in a market detached from the rest of the UK. Many overseas buyers continue to pile into London property to take shelter from economic or political storm clouds elsewhere which is helping to boost prices and confidence in the capital.”

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