Increased Optimism in Housing Market Expressed by Surveyed Homeowners
With a week left to January things are already looking very optimistic in the housing market despite the harsh winter weather that should be thought of as having stifled activity. According to the Housing Market Sentiment Survey conducted by the property lister Zoopla, confidence is growing and buyers are set to return to the market. Homeowners responded in the report that they expect property prices to increase in the next six months by 3.6%.
Lack of deposits and inability to obtain lending has been the hardest obstacles to overcome by those that have been held off of the property ladder. Yet, in comparison to the same time last year those homeowners responding to the survey are more optimistic with 65% expecting an increase in house prices in the first half of the year. Last year only 55% were confident in rising house prices. In 2012, pessimism was expressed by 29% that expected a decline in house prices and this year only 19% expect a decline in property values.
Homeowners still expressed concern over the lack of mortgage lending for those being shut out of the housing market. The survey revealed that 85% felt that lending was still difficult to obtain, especially for first time buyers. Lenders did express in a separate survey conducted by the Bank of England that they expect to increase their lending levels in the first quarter of this year to meet expected demand from buyers due to lower interest rates, better mortgage offers, and affordable house prices.