Market confidence in house price rises falls nationwide
Market confidence in the property sector across the UK has fallen to its lowest level in almost five years, thanks to the lack of affordable homes and the perceived difficult times ahead for buyers nationwide.
According to the results of the survey published by Halifax, only around half of people in the UK say they expect to see the price of houses rise in the next 12 months. In addition to this, a surprisingly high 20 per cent of people also said they expect to see prices fall in the next 12 months.
The reasons for this result largely come from the fact that there are fewer people nationwide who can afford to get onto the ladder, which will affect market activity, while the rise in interest rates expected in the coming weeks has not helped sentiment either.
As many as 61 per cent of people said they cannot afford to buy a home because of the prohibitive costs of saving towards a mortgage, while another 42 per cent said concerns around job security were holding them back.
Confidence in the market has now fallen by 14 points between April and October, according to the Halifax, as well as dropping 38 points since it peaked just over two years ago. It means that there are now lower levels of confidence towards the market than there have been at any time since December 2012.
"Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market," said Russell Galley, managing director of the Halifax Community Bank.
"Even with a potential base rate increase on the horizon, it’s significant that buyers’ concerns continue to be centred on raising deposits and job security and, as such, we do not anticipate that an increase in base rate will have a significant effect on the demand for properties," he added.
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30-October-17General Lettings News