Consumers split over house price predictionsMonday, 25 October 2010 11:50
Potential house buyers are evenly split in their predictions for prices, according to the latest Consumer Confidence Survey by Rightmove.
More than 25,000 potential home-movers were surveyed and 32 per cent expect prices to fall over the next 12 months, compared with 27 per cent expecting prices to rise, 36 per cent expecting no change and 5 per cent unsure.
This is the first time in 20 months that the index has tipped towards price falls, but the overall consensus is far from definitive. General economic uncertainty after the Comprehensive Spending Review means that it is difficult to predict how the market will react.
Among those who said prices would rise, a general improvement in economic conditions was the most regular reason given.
Meanwhile price pessimists said that a general decline in economic conditions was the primary reason that they anticipated prices to fall.
Miles Shipside, director of Rightmove, said: “This quarter opinion is divided. It’s unusual to see such a split, but it shows that current economic uncertainty is forcing people to take sides in their view of the housing market.”