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Brits still optimistic on house price rises

by: Ciara Murphy
  • 19/07/2012
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Brits still optimistic on house price rises
More Brits are expecting house prices to rise than fall over the coming twelve months, but do believe it is harder to buy a house now than it was before the impact of the recession.

According to the latest quarterly Halifax Housing Market Confidence tracker, 34% of Brits predict a rise in average house prices over the next year, compared to 19% who expect falls.

Martin Ellis, housing economist at Halifax, said: “The public’s confidence in the housing market…has been very resilient so far this year. This is consistent with the broad house price stability experienced over the first half of 2012.”

Those most confident were from London and Wales, compared to the East Midlands who were the least positive.

Almost three quarters of the tracked regions saw a weakening in their headline House Price Outlook balance between March and June.

Ellis said: “We expect little change in prices and sales over the remainder of the year provided that the UK’s economic outlook does not deteriorate significantly.”

It is also perceived to be more of a buyers market, with more than half (54%) thinking it will be a good time to buy over the next year, compared to only 15% thinking it will be a good time to sell.

However, a growing trend for home buyers is to buy a house near their parents.

According to the Nationwide Building Society, 44% of homeowners live no further than 10 miles from where they grew up. This choice cuts down their housing prospects, meaning they may have to buy houses for more than they would elsewhere.

Tracie Pearce, Nationwide’s head of mortgages, said: “Home is wherever you decide to make it. Of course where we choose to live is a very personal choice.”

For many, a desire to stay close to friends and family is what prevents a move away, and not necessary financial difficulty.

Many believe that it is also now harder to buy a house, with 58% believing that the main challenge is raising a deposit, and 56% voicing their concerns about job security as a dilemma.

Nearly a third of respondents also believe that concerns about general household finances and the availability of mortgages are key problems stopping you buying a house.

Rental costs were also seen to be a concern, with 61% of Britons expecting them to increase over the next twelve months. However, the overall percentage of people who think rental costs will increase has fallen by 10% from 71% to 61%.

 

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