Confidence in property prices, though still high, dipped slightly in April, according to the latest figures.
The Halifax Housing Market Confidence Tracker, compiled by market research company Ipsos MORI, found out that the proportion of UK adults who believe that property prices will rise in the coming 12 months, as well as the proportion who believe that the coming 12 months will be a good time to sell, has fallen since March.
63% of respondents believe that prices will rise in the next year, compared to 67% in March, whilst the proportion who believe it will be a good time to sell fell from 59% to 56%. The proportion who believe it will be a good time to buy, on the other hand, has risen – from 53% to 55% 1.
This is despite a surge in mortgage purchase approvals in the same month, with Bank of England data released today showing that 68,076 loans were approved in April. This is a 12.2% increase on the preceding six-month average of 60,679, and a 14-month high 2.
With inflation at extremely low levels since the start of the year, and April seeing the first negative inflation since the 1960s, interest rates look unlikely to increase until next year, paving the way for further increases in demand and purchasing power. In fact, with pre-election uncertainty now out of the way, experts anticipate ‘boom conditions’ to return to the UK market.
It only remains to be seen whether May’s figures reflect the renewed confidence to which all other signs are pointing.
- “Positive selling sentiment wavers with small dip in house price optimism”. Ipsos MORI. 1 Jun 2015.
- “Money and Credit: April 2015”. Bank of England. 2 Jun 2015.