Britons expect house price decrease



halifax

halifax

Only one in three UK mortgage customers expect house prices to increase this year, with the vast majority expecting house prices to stay the same, or to decrease.

With house prices falling by 1.2% in the last three months, it was surprising that one in three felt house prices would increase this year, with clear evidence that a lot of people weren’t sure what was going to happen.

57%, a majority, believed that house prices would increase or decrease by less than 5% in the next year, with 26% not believing they would change at all and 24% expecting a change of over 5%, either through an increase or decrease.

Half of all those 1000 Britons surveyed believe they next three months is a good time to buy a home, although only a sixth of those asked thought that the next three months was a good time to sell.

Only 15% of those asked thought that selling and then buying again was a good idea in the next year, suggesting at least another year of subdued activity in the mortgage market.

Many people cited job security, interest rate changes and household finances as reasons to not move home as they were worried the upheaval could turn their finances over the edge.

Suren Thiru from the Halifax, said, “More Britons expect house prices to rise rather than fall over the next year.

“This is likely to partly reflect the relatively low burden of servicing mortgage debt.

“However, confidence in the UK housing market is likely to remain subdued over the coming months, given consumers’ concerns over the outlook for the UK economy in general, and the jobs market in particular.”

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