A recent housing survey conducted by Zoopla confirmed ideas regarding consumer confidence about the UK housing market.  The level of confidence was already known to be at a low level based on indicating figures coming out of the banking sector.  While the rest of the economy is struggling to regain its footing, most residents whether they are homeowners or not, are not piling all their extra funds into any type of new housing.  The remortgage market has even fallen back into a state of dormancy. 

The Zoopla survey revealed slightly more than 50% of its responders believe local home prices will rise within the next six months.  That figure can be compared with the 59% which believed they would rise when surveyed in the third quarter of last year.

The opinion for the outlook of the London housing market, however, lies completely on another plane.  More than 70% of homeowners residing in the capital city believe that average home prices there will increase within the next six months.  The third quarter survey revealed only 68% was of the same belief.  Many estimate home prices in London will increase by almost 5% in the first six months of this year.

Nicholas Leeming of Zoopla commented on consumer confidence in regard to the UK housing market, saying: “There is a lot of general economic uncertainty at the moment which is taking its toll on homeowner confidence.

“Until there is some good news on the overall economy, homeowners will continue to be cautious with their optimism for the property market.

“Londoners, however, are living in a market detached from the rest of the UK. Many overseas buyers continue to pile into London property to take shelter from economic or political storm clouds elsewhere which is helping to boost prices and confidence in the capital.”