Six out of 10 people think property values will be higher in a year’s time, according to Halifax.
What’s the latest?
Confidence in the UK housing market remains strong despite concerns about the economic outlook.
Six out of 10 people think property values will be higher in a year’s time than they are now, with 13% expecting a 10% increase, according to Halifax.
Unsurprisingly, given their positive outlook, 55% of Brits think the coming year will be a good time to sell a home, while 54% think it will be a good time to buy one.
But they are much less upbeat about the outlook for the economy, with a balance of 1% expecting it to deteriorate in the year ahead.
Why is this happening?
Confidence in the property market is being buoyed by a combination of different factors.
Craig McKinlay, mortgages director at Halifax, explained: “Solid economic growth, rising real earnings and falls in already very low mortgage rates are all stimulating housing.
“At the same time, there is an increasingly acute imbalance between supply and demand, which is causing property prices to rise at a robust pace.’’
Who does it affect?
While rising house prices are great news for existing homeowners, they are further bad news for those trying to take their first step on to the property ladder or those hoping to trade up it.
In fact, 37% of people cited rising house prices as being a barrier to buying a property.
Sounds interesting. What’s the background?
“Solid economic growth, rising real earnings and falls in already very low mortgage rates are all stimulating housing."
While rising house prices are an issue for those hoping to buy a new home, raising a sufficient deposit is still seen as the biggest barrier, flagged up by 58% of people.
A further 42% of people thought concerns about job security were preventing people from purchasing a property, while household finances were seen as a problem by 31%.
But anxiety about interest rates rising are no longer seen as an issue, with just 11% of people mentioning it as a concern.