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Housing market confidence dips as mortgage concerns remain

6th July 2010

  • Number of homeowners expecting house prices to rise drops from 81% to 78%
  • 77% surveyed say mortgage funding is no easier to get now than 3 months ago
  • Worry about job losses and interest rate hikes hangs over the property market

Whilst 78% of homeowners think that property prices will rise over the next six months, according to the latest Housing Market Sentiment Survey from property website Zoopla.co.uk, this figure has fallen from 81% three months ago as concerns grow around the availability of mortgage finance persist.

According to the survey of 5,442 homeowners by Zoopla.co.uk, which provides free value estimates for every UK home, the average respondent expects house prices to rise by 5.5% from current levels by the end of the year.

However, although confidence remains relatively high, concerns remain around mortgage availability with one in three (34%) of those surveyed citing this as the biggest continued threat to the health of the property market and more respondents (27%) saying it is now harder to get a mortgage than 3 months ago than those saying it is easier (23%). Other key concerns to a continued recovery in the housing market were a potential rise in interest rates for 25% of respondents and the impact of job losses in the public sector for 21%.

The Scots appear the most upbeat over the prospects for their local property market, with 84% expecting house prices in their area to rise over the next six months, compared to 79% in England and 73% in Wales. Residents in Northern Ireland are least optimistic, with only 67% predicting house prices will rise over the next six months.

Nicholas Leeming, Commercial Director of Zoopla.co.uk, said: "Confidence amongst homeowners remains high for the timebeing, but the dip does signal a directional shift and that concerns are building again around the outlook for the property market. The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase lending. With job cuts looming in the public sector and interest rate hikes expected at some point, the new government has its work cut out for it to ensure that home ownership remains affordable and attainable for most people."

- Ends -

For further information, please contact Tim Vooght at pr@zoopla.co.uk or on 020 3872 5615.

Notes to editors

About Zoopla.co.uk

Zoopla.co.uk is the UK's most comprehensive property website, focused on empowering consumers with the resources they need to make better-informed property decisions. We help our users make sense of the residential property market by combining property listings with market value data, local information and community tools.

Zoopla.co.uk was founded on the principles of transparency and efficiency and everything we do aims to make the market more effective for both property consumers and professionals alike. By combining free, instant value estimates for every UK home with sold prices, local market information and hundreds of thousands of properties available for sale and to rent, Zoopla.co.uk has rapidly become the ultimate destination for property consumers to search for property and do their market research. Our unique features allow users to gain an insight into the market and discover information they won't find anywhere else. And, as a result, we have become one of the most valued sources of both applicant and vendor leads for UK estate agents.

Launched in 2008, we are the fastest growing property website in the UK, now attracting over 12 million visits per month and are proud to have been awarded numerous accolades including being listed in the Top 10 UK Tech Companies (Guardian) and the Top 10 Most Innovative UK Companies (Smarta 100) as well as being voted the UK's Best Property Portal (Web User, Daily Mail Awards, Website of the Year).

Zoopla Limited is a privately held company with a highly experienced and proven management team, led by Founder and CEO, Alex Chesterman, and backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).

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