Confidence in the Market has Fallen
Zoopla’s latest housing market survey has revealed that confidence in the market has fallen to its lowest level in a year in Quarter 4 (Q4) 2011.
The study uncovered that 55% of homeowners are now expecting to see an increase in house prices in their local arrears over the next six months, compared to 59% in Q3.
It also found that assurance in the London housing market is higher, with 72% of London homeowners anticipating prices rising over the next six months, compared to 68% in the previous quarter.
It is expected that the first half of 2012 will see house prices in London increase by 4.7%. This is compared to a predicted rise of 3.6% in Q3 2011.
Moreover, just under half of respondents (48%) said the predominant sign that there are improvements in the property market would come from developments in mortgage availability. However, 11% claimed that it is currently easier to get a mortgage than it was three months ago.
Nicholas Leeming, of Zoopla, says: “There is a lot of general economic uncertainty at the moment, which is taking its toll on homeowner confidence. Until there is some good news on the overall economy, homeowners will continue to be cautious with their optimism for the property market.
“Londoners, however, are living in a market detached from the rest of the UK. Many overseas buyers continue to pile into London property to take shelter from economic or political storm clouds elsewhere, which is helping to boost prices and confidence in the capital.”1