Confidence in the UK housing market remains glued to ‘uncertainty' in line with feelings stretching back four months, new research finds.
Woolwich’s consumer confidence index for July finds half of homeowners expect prices to increase over the next year, in competition with 62% last year.
The mortgage arm of Barclays says the market has been waiting on an interest rate cut, but the jury is still out on whether a quarter point reduction will open up the market again.
Andy Gray, head of mortgages at Woolwich , argues the cut represents the first real opportunity to wake the housing market up from its lethargy.
Gray says: “Those with existing mortgages will be able to loosen their belts a little, but whether it is enough to entice more buyers to the market is open to question. We will look with interest to see how buyers respond.”
Meanwhile confidence research conducted by Prudential reveals UK confidence in property is on the increase as nearly six in ten individuals report an increase in the price of their property from a year ago.
Moreover, 43% of respondents believe prices will continue to rise and will do so over the next year, while only one in ten believe the value of their property will decrease.Prudential finds UK borrowing attitudes have also started to change with individuals looking to pull back their levels of borrowing, as over the following year, 18% of people believe they will be able to reduce their borrowing against 8% who think they will borrow more.Angus Maciver director of brand and insight at Prudential UK, says: “The news that people are starting to save more and borrow less is good. It seems that at last the message about the need to plug the worrying savings gap may be sinking in.”
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