Is property still a safe bet? Confidence in rising house prices at lowest ebb since summer of 2013, survey shows
02-26-2015
- Overall balance of 52% think house prices will be higher in 12 months' time
- This is the lowest number since June 2013, Halifax reports
- Comes despite property values increasing 2% in January
By Lee Boyce for Thisismoney.co.uk
Confidence that house prices will continue their upward momentum in the coming months has fallen to its lowest level since June 2013, a study has found.
While 60 per cent of Britons surveyed in January expect average property values to be higher in a year's time, eight per cent believe prices will fall, the Halifax report shows.
The overall balance of 52 per cent who expect prices to rise is the lowest since the summer of 2013, just before property values rocketed.
Slowing down? The latest Halifax survey shows property price confidence slipped in January
The index peaked last summer, when a net 66 per cent believed house prices would stand higher in 12 months' time. The last time it was in negative territory was at the tail-end of 2011.
Around one in four expect values to be around the same in a year's time. The latest Halifax house price index for January found values increased two per cent to £193,130.
The strength of the housing market recovery at the start of last year took many by surprise, but in recent months there have been signs that the market has entered a calmer, more balanced phase as activity has spread beyond London.
Some experts have said recent changes to stamp duty could give the market a boost this spring as many buyers will find the tax cheaper, although the looming general election could cause some disruption to the market.
Falling confidence: The plus 52% saying house prices will be higher in 12 months' time is the lowest since summer 2013 according to Halifax
Craig McKinlay, mortgages director at Halifax, said: 'More than half still believe house prices will be higher than they are now in a year's time - however optimism has continued to weaken.
'Despite this, the fundamentals remain in place and we're now seeing a return to the seasonal trend for house price activity.
'Traditionally, a slow start builds to the summer before another lull and then a further period of increase followed by a gradual easing at the end of the year.'
Mr McKinlay said far more worrying are the latest figures from the Department for Communities and Local Government, which showed a slowdown in the number of new homes being built.
The figures revealed between September and December 2014, house building starts in England were estimated at 29,800, a 10 per cent decrease compared to the previous quarter.
The number was also down nine per cent per cent on the same period a year earlier.
The Halifax confidence survey asked 1,000 people from across Britain about their expectations for property prices.