Housing confidence on the up

CONFIDENCE is returning to the housing market with over half of househunters expecting prices to rise this year.

New research found 52% of homebuyers questioned in January thought prices would rise compared to just 30% in December.

The figures will ease fears that the housing market is heading for a crash and will stack the odds against an interest rate cut when the Bank of England meets next week.

Consumer lending, insolvency numbers and manufacturing inflation prices out this week should give the Monetary Policy Committee more guidance on where the economy is heading.

The research, from property website propertyfinder.com, found 43% of people surveyed expected prices to fall, down from 66% in December.

East Anglia experienced the largest gain in confidence, but househunters in the south expect prices to remain depressed.

Propertyfinder.com managing director Jim Buckle said: 'Contrary to popular belief, the housing market is not heading for a crash. Last month the seeds of optimism were sown as confidence in the housing market began to increase.'

The company said it has seen property detail requests soar by 80% against December as the new year housing market gains momentum.

'As the spring approaches I would expect to see a gradual improvement in househunter confidence, provided interest rates remain steady.'

However, the percentage of first-time buyers visiting the site has slipped for the second month in a row from 36.3% to 30.4% as many properties on the market are still out of their price range.

Buckle said: 'This makes poor reading for young househunters, although Government plans to introduce initiatives such as low-cost starter homes may shed a of hope for some would-be first-time buyers.'