This is according to propertyfinder.com’s May survey of confidence in the housing market which found that 60% of the 2,050 respondents thought house prices would rise by May 2010, with only 32.5% forecasting a fall. Around 8.5% of respondents thought house prices would be unchanged in twelve month’s time.
The survey shows a healthy rise on April when half of respondents (49.9%) believed house prices would increase in the next twelve months and is the sixth consecutive month of improving confidence.
Nicholas Leeming, director of propertyfinder.com, commented: “A large majority believe the housing recession is almost at an end. Although prices may yet drift a bit lower before beginning their recovery, the worst is now behind us. We should not expect a renewed boom however. The market is still in intensive care and expectations for price growth are very modest – at just 1.3% more or less in line with likely inflation. Transactions are much more important than prices – unlocking the log jam and getting people moving again boosts consumer spending and provides business for the legion of trades and professions who depend on house moving and renovations.
Activity is most likely to recover first in areas where interest in properties is greatest – and buyers in London led the way in May. Buyers made more enquiries per property to estate agents in the capital than any other region in May. The South East and South West of England followed closely behind London for interest, with Scotland also amongst the top regions. By contrast, interest remains relatively low in the North East and North West.
Topping the local hotspots were the Orkney Islands, followed closely by the Highlands. There was more buyer interest per property for sale in the Orkneys than anywhere else in the country.
