BSA: House price expectations are on the rise
House price expectations have seen a significant increase, with 40% of people thinking prices will rise according to the BSA Property Tracker.
This is up from 28% recorded in December.
Just 17% believe that prices will fall in that time, which is down from 26% in December.
However housing market sentiment is positive for the first time in three years, with the net figure standing at +2% up from -8% in December.
This is the first time this figure has been positive since March 2017.
Brexit (46%) and the General Election result (41%) are the main reasons behind among those with increased optimism when asked whether ‘now is a better or worse time to buy a property than three months ago’.
Interestingly, those who are more pessimistic towards the market than in December specified the same reasons behind their answer; Brexit (64%), the worsened economic environment (42%) and the General Election result (33%).
Just over a quarter (28%) of people that are more pessimistic now than in December said this is due to concerns over COVID-19.
Paul Broadhead, head of mortgages and housing at the BSA, said: “It is encouraging to see housing market sentiment pick up in the first Property Tracker survey of 2020. Here’s hoping the trend continues.
“The polarisation of the nation when it comes to both Brexit and last year’s election means it is hardly surprising that these key events are behind why people think it is a better – or indeed worse – time to buy a property than it was three months ago.
“We will be keeping a weather eye on the impact coronavirus has on the housing market.
“Reassuringly, these results show that, for now, it is a relatively low concern for people in terms of the housing market.
“People who are concerned about the coronavirus and meeting their mortgage repayments are encouraged to speak to their lenders.”