Solid foundations for market optimism
The prospects for homeowners are looking brighter with two leading lenders forecasting double-digit property inflation by early next year and analysts pointing to concrete evidence of renewed confidence in the housing market.
Both the country's largest building society, Nationwide, and the UK's biggest mortgage lender, Halifax, are predicting a rapid rise in house prices at the start of 2010 and are forecasting annual increases of more than 10%.
However, estate agents are warning of a possible slowdown towards the summer, as homeowners postpone any decision to move until the outcome of the general election, which could see new government legislation, such as Tory plans to scrap HIPs.
Nationwide has also reported a steady and regular improvement in its consumer confidence index throughout the last 12 months. It said that expectations were often a short-term driver of house prices and that even a small increase could trigger a significant rise in house price inflation in the coming months.
Heywoods Estate Agents said that the signs were particularly encouraging as much of the current noise about a recovery was coming out of the quality newspapers such as the Daily Telegraph.
A company spokesman said that the leading broadsheets tended to reflect a more accurate picture of events and their positive predictions for the coming year provided homeowners with genuine cause for optimism.