More people positive about the housing market

Survey finds more people think prices will go up rather than down next year

October 30, 2012

Just over one third of those surveyed by Halifax believe that house prices will increase next year. However, one fifth think that there will be a drop in prices and a similar proportion of those who bought between 2007 and 2012 believe that their house is now worth less than what they paid for it. Most people predict only a small increase in prices but confidence is stronger than it was at the start of 2012.

Martin Ellis, housing economist at Halifax, said: “Despite some regional differences, the general improvement in confidence in the outlook for house prices over the past year reflects the relative resilience of the UK housing market. Although the weak economic climate remains a significant constraint on housing demand, the low level of mortgage payments relative to income continues to provide support for house prices. We expect house prices to be broadly unchanged over the rest of this year and into 2013.”