The survey revealed the majority, or 63% of homeowners expect property prices to fall or hold steady over the next six months, compared to 78% of homeowners three months ago, showing a big decline in confidence in the housing market.
The average growth predicted for house prices in the next six months has also dropped to only 3% from 5.5% three months ago, according to the survey of 6,149 homeowners. The number of respondents that expect property prices to fall over the coming six months is up sharply to 1 in 4 from 1 in 10 only three months ago.
The survey shows the odd relationship between an Englishman and his or her property remains as 25% of those surveyed said they expected house prices in their local area to fall over the next six months, but 4% less expect the value of their own home to fall during that time. Equally, the poll revealed homeowners expect the value of their home to grow 13% faster than their neighbour’s.
The shortage of mortgage financing is still causing people problems, with 9 out 10 respondents saying it is no easier to get financing now than it was three months ago.
Nicholas Leeming, commercial director of Zoopla.co.uk, said: “The shortage of funding on offer is preventing many people who do want to buy from being able to purchase a home, particularly first time buyers. Increasing activity levels is vital for the health of the property market, and the wider economy in turn, and the banks must pull out all the stops to increase lending.”
Across the UK, the Scots remain the most upbeat about the housing market, with 71% expecting house prices in their area to rise over the next six months, although this is down from 84% three months ago.
In England optimism has fallen the most with 62% predicting house prices rises compared to 79% three months ago. And the Welsh are the most pessimistic on the chances of local property prices rising in the next 6 months with only 61% of Welsh homeowners predicting an increase versus 73% three months ago.
