At a time when consumer confidence regarding the UK housing market should be on shaky ground just prior to a general election, recent data indicates many believe the housing market will rebound faster than expected. Data available through the latest quarterly Halifax Housing Market Confidence Tracker reveals some positive number about how the public really feels. A net balance in confidence has bounced back from a +60 in February of this year, to a +64 in the month of March. This portrays a much more positive outlook than the slowdown in the increase of house prices.

One third of consumers are expecting house prices to rise by 5% during the next 12 months, whilst one quarter believe an increase of between 5 and 10% will be the case.

Craig McKinlay of Halifax commented on the current opinion of the public regarding the market’s future, saying: “We’ve seen a strong start to the year in terms of the net sentiment regarding the outlook for the housing market, and this has translated into an increase in transaction volumes. This increase in optimism is likely to be the result of a combination of factors, including the improving economic figures, greater numbers of higher loan to value mortgages, and extremely competitive mortgage rates.”

The market’s next move is hinging on the outcome of the general election, which will take place in the coming weeks. Not only is activity expected to spike in regard to original mortgage lending, but remortgages as well. The conclusion of the election will make an impact as well as the warmer weather.