Consumers split over house price predictions

Monday, 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.”
 

North-South divide over house price predictions

Some 19 of the top 20 UK towns where residents expect prices to grow are located in the South, while 17 of the 20 locations where people are predicting price drops are in the North, according to a study by Rightmove.

It's not all doom and gloom, says Miller Homes

Following a series of depressing headlines about the property sector, homebuilder Miller Homes has argued that there is plenty for UK homeowners to smile about.

First-time buyer comeback on the cards

Next year could see a resurgence of first-time buyer activity, according to the latest figures from the Rightmove First-Time Buyer Forecast, which shows renewed interest in first home purchases over the next 12 months.

Britain's house prices 'overvalued', say consumers

Around half of Britons believe property is overvalued, yet just one in four anticipates further house price falls, a new poll has found. Rightmove said this suggests the prospect of a stand-off with rising levels of homes remaining unsold.

CEBR predicts 1.7% house price fall for 2011

Annual house price growth is set to end the year on a negative note, with unemployment and low wage inflation denting mortgage demand, according to the latest forecast from the Centre for Economics and Business Research.

 

House Price Index

Energy Bill