Confidence in The Housing Market Returns!

by Mark Johnston

Confidence in The Housing Market Returns!

It appears that although many people are still worried about the cost of energy and food, confidence in the housing market is now on the up……….

Research by a property search website, zoopla, found that confidence in the housing market among home owners has soared to its highest level in three years.

first time buyers 2This therefore means that consumers are more likely to buy a home as the economy and the housing market rebound.

A recent  survey revealed that more than 80 per cent of those surveyed believed it is now a good time to buy a home,  which is the highest percentage since 2003.

The housing market has been given another shot in the arm as potential buyers create a “stampede” to enjoy some of the best high street mortgage deals in a generation.

Lawrence Hall, spokesman for Zoopla.co.uk, the property website said: “The housing market has seen a number of positive events in recent months including the Budget and growing confidence from home owners is a significant step towards a recovery.”

Prices are now at realistic levels and this in turn is helping to drive growth, this along with the Bank of England’s intention to keep interest rates low has also improving confidence.

Industry experts feel that house prices being driven up by improving consumer confidence and higher employment, as well as schemes like Funding for Lending and Help to Buy.

According to the Office for National Statistics (ONS), house prices in the year to June rose by 3.1 per cent, which is up from 2.9 per cent in May.

Analysts at IHS Global Insight, the leading provider of global and financial intelligence, estimate that, across the board, house prices will rise by at least 3 per cent over the rest of 2013 and then potentially increase by 7 per cent in 2014.

It also seems that the housing market is starting to turn a corner as buyer numbers have grown at the fastest rate since 1999.

Current figures released by the Royal Institution of Chartered Surveyors’ (RICS) Residential Market Survey show that the amount of potential buyers looking to enter the market grew at their fastest rate since August 1999.

Peter Bolton King, the Royal Institution of Chartered Surveyors (RICS) global ­residential director, states that “It looks like at long last a recovery could be around the corner. Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year but this is the first time that everywhere has experienced some improvement.”

Patrick Foley, chief economist at Lloyds TSB, said: “As the outlook for the UK economy gradually improves, firming consumer confidence remains vital to a self-sustaining recovery.

Some surveyors say that many of the figures indicated increased confidence and job security across the country which could mean that job losses and austerity could therefore be behind us.

While other experts have suggested that the biggest beneficiary of a strong housing market is the wider economy.

 

 



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