The Woolwich index shows that 45 per cent of homeowners believe their property will continue to increase in value compared to 40 per cent in January.
Andy Gray, head of mortgages at Barclays and Woolwich, said: “These figures are the strongest indication yet of a housing market on the rebound, after ‘bottoming out’ in the last six months of 2004.
“Potential buyers have been waiting for the market to stabilise before they buy and now would seem to be the time when their confidence is starting to return, as interest rates have been remained unchanged for seven months in a row. The next few months are traditionally a time of increasing buying and selling in the housing market, as people shake off the winter blues.”
While still lower than the three-year average for February of 57 per cent, this increase in confidence signals that people believe the UK housing market has turned a corner. However, confidence levels still have some way to go after falling by 25 per cent between June 2004 and January 2005.
Regional Highlights
The North East and North West recorded staggering rises of 9 per cent, while Scotland remains the most confident region at 53 per cent, a rise of 3 per cent. The only area with lower confidence is in the South West, down from 39 per cent to 37 per cent. In London, the single largest market for property, confidence rose by a considerable 4 per cent to 40 per cent.
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REGIONAL BREAKDOWNS FOR FEBRUARY AND JANUARY
REGION % OF RESPONDENTS WHO THOUGHT THE VALUE OF THEIR HOUSE WOULD INCREASE OVER THE NEXT 12 MONTHS
February ‘05 January ‘05
SCOTLAND 53% 50%
NORTH EAST 48% 39%
NORTH WEST 51% 42%
YORKSHIRE 47% 43%
MIDLANDS 43% 37%
WALES 43% 41%
EAST 47% 42%
LONDON 40% 36%
SOUTH EAST 41% 36%
SOUTH WEST 37% 39%
