Confidence grows as more homeowners expect to see prices rise

 
Confidence grows as more homeowners expect to see prices rise

In early 2015, there's been something of a negative atmosphere hanging over the property market, particularly in London. What with the news that price rises slowed hugely in the last few weeks of 2014 and the suggestion that the uncertainty over the election would lead to a drop in demand in the first half of this year, there has been a slight deflation in confidence.

However, among homeowners, it seems that optimism still reigns, with a new survey suggesting that the vast majority of property owners are now expecting to see the price of their property rise in the next few months. 

Even though the election has caused some people to predict a slowing in the volume of buyers, research from property portal Zoopla has suggested that some 88 per cent of homeowners across the UK are expecting to see the value of their home rise by summer of this year. 

While this is a slight drop from the 92 per cent who said the same last year, it is still a significantly high number given that there has been such widespread talk of a decline in demand, showing that owners are not worried about the current state of the property market in London and further afield. 

By way of contrast, only seven per cent of people said that they believe their house will be worth less in six months time than it currently is. 

In London, property owners believe that their assets will rise in value to the tune of nine per cent moving forward. This is ahead of the national average of seven per cent. 

"The UK property market appeared to have changed its spots towards the end of 2014 and the more sluggish pace of growth seen in the latter months was a very different beast to the lively price hikes of the spring," said Lawrence Hall of Zoopla. 

"But homeowners don’t appear to have been seriously spooked, with consumer confidence standing firm. Encouraged by the vast gains they’ve already experienced this year, homeowners still expect to benefit from significant house price growth in the first half of 2015."