Consumer confidence in the housing market reached 49 per cent in April, up 10 per cent from December when it was at its lowest point since the survey began in 2001.
Confidence levels have grown steadily since January, but remains down on last year, when consumer confidence over April-May was at a three year high of 66 per cent.
Andy Gray, head of mortgages at Barclays and Woolwich, says, "After five months of cautious improvement, we're almost at the half-way point, where the majority of people believe their property prices will improve.
"With confidence increasing, there will be less pressure to keep interest rates frozen. The danger is that rates will rise far too early, and slow a resurgent market. Though the figures reflect increasing optimism, 32 per cent still believe the market will remain flat. A sizeable number of people are still clearly cautious about the housing market."
The Woolwich consumer confidence index shows that 49 per cent of homeowners now believe their property will continue to increase in value compared to 47 per cent in March and 40 per cent in January.
Regional Highlights
In the North East and Greater London confidence has risen the most by eight per cent and six per cent respectively, though Scotland remained the most confident region at 60 per cent. By contrast East Anglia recorded a two per cent fall, confidence is now down to 45 per cent.
