A recent survey is suggesting that confidence in the housing market has tumbled to its lowest level ever in the last three years. These fears are mainly based on over-inflated prices and talk of rises in interest rates.
Across the UK, the balance of people who believe that the next 12 months will be a good time to buy a home has dropped from 34% to 5%, according to a quarterly housing market confidence tracker.
These latest figures represent the difference between the number of people surveyed who are positive about buying property in the next 12 months, and the proportion who believe it is a bad time for buyers. People living in London and the South East regions are the most negative, with those in Scotland and the North East being the most confident about buying.
Worries about interest rate rises are also having an impact on buyer confidence, 18% of the survey respondents believe that action will be taken by the Bank of England as recovery continues, up by 13% from last years survey.
Although feelings about buying a property are at their most negative since 2011, the view that the next 12 months is the best time to sell a property has never been higher. 25% of people surveyed believe that it’s a great time to sell a property, however it does appear that the equilibrium between buyers and sellers is much more out of sync.
It will be interesting to see what the next set of survey responses bring as we move into the Autumn, and signs that the number of new buyers registering with estate agents are starting to drop emerge.