Housing market confidence dips as mortgage concerns remain
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."
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