Homeowner market confidence on-the-up

The vast majority of homeowners are confident that property prices will rise over the next 12 months, as new research banishes the doom and gloom of recent years.

According to the latest Housing Market Sentiment Survey from Zoopla.co.uk, 81% of homeowners believe property prices will increase compared to just 30% last year.

Only 9% of homeowners feel that property values will fall over the next six months whilst a further 10% expect prices to remain flat. The average growth predicted by those surveyed is for house prices to rise by an optimistic 5.7% by October.

In addition, confidence in the housing market is known for driving increased transactions as homeowners welcome the prospect of a more stable market.

However, the meagre lending practices still employed by high-street banks mean mortgages and home loans will continue to be sparse, despite 78% of buyers claiming it is now easier to obtain a mortgage than previously.

"With the bad weather behind us and the recent stamp duty relief introduced for first-time buyers, confidence in the property market has bounced back well," commented Nicholas Leeming, Zoopla Commercial Director.

"Despite the optimism, significant concerns remain around the supply of mortgages and whilst affordability levels are now higher than at any time in the past few years the lack of mortgage funding, especially for first-time buyers, remains the single biggest threat to a full housing market recovery."

As the election campaign takes shape, the future government will exert major changes to the country's financial system, and 23% of those surveyed will wait for the final outcome before considering property-related issues.

Whatever the result, Zoopla's research has shown yet another promising sign of economic and property recovery. Those planning to leap around the property ladder in the next year should approach local solicitors to help chart a continually unpredictable market.

Source: TLA