53% of the 2,462 respondents thought house prices would increase by June 2010, with only a quarter (26%) predicting that prices would fall. One in five respondents believed there would be no change in house prices in a year’s time. The survey shows a slight dip on May when 60% believed house prices would rise in the next twelve months, but confidence still remains higher than at any stage since September 2007. Rising mortgage rates caused anger among respondents. 57% said mortgage finance was too expensive and a further 51% felt lenders were not playing fair. Only 6% believed lenders were not to blame.
Housing transactions are stabilising and rising confidence is likely to improve the situation further. Mortgage approvals are a third higher than at the start of 2009 (a 34% increase in April from January), which bodes well for improving transaction levels in the coming months. There is currently a 79% correlation between Land Registry transactions and propertyfinder.com’s confidence monitor, indicating that those seeking to buy or sell a property will now be able to do so more quickly.
