In contrast to reports claiming the property market has passed its peak, research has shown the UK’s homeowners are confident house prices will continue to increase, with interest rates remaining low, borne-out by last Thursday’s 0.25 per cent rate-cut.
Concerns about a boom-and-bust scenario are having little effect on consumers, according to research. The survey reveals a healthy 57 per cent of people expect the value of their home to increase during the coming year, a rise of six per cent over the last three months. Only nine per cent fear the value of their property will decrease, as opposed to 14 per cent in April this year.
Geoff Greer, Yorkshire Bank’s chief operating officer (head of Yorkshire Bank), said: “Recent speculation about a possible crash in the property market could have had a negative effect on homeowners’ attitudes, but people seem to be feeling optimistic about the housing market in general. Well over half of us feel confident the value of our home will increase over the coming year – that’s only four per cent down on a year ago, at the height of the property boom. However, this continued buoyancy doesn’t bode well for first time buyers eager to get into the property market – and our research shows they’re finding the situation increasingly infuriating.”
