House market confidence growing
New research has found that confidence levels in the housing market have returned to levels not seen since before the credit crunch.
Property website Zoopla quizzed more than 10,000 people and found that 81% expected house prices to rise during the coming six months. What's more, the average price rise was predicted to be 5.4%.
Zoopla claims the increase is a significant turnaround from a year ago, when only one in five people expected property values to increase during the first half of 2009.
The company's commercial director, Nicholas Leeming, said this time last year confidence in the property market was at rock bottom and the outlook was bleak. But, he added, a year is a long time in the housing market and, whilst the recovery is still in its infancy, optimism is now back to levels not seen since the credit crunch began in 2007.
The shortage of homes for sale has prevented any improvement in transaction levels over recent months, he continued, but with increased confidence amongst owners about putting their homes on the market to match the pent-up demand from buyers, we could see a welcome boost to the recovery of the housing market.
The company believe people's confidence in the housing market suggested the number of homes changing hands would begin to increase during the coming months.