Consumers’ confidence in the prospects for the UK’s housing market are high, according to the latest figures, with 25% believing that house prices will shoot up by 5% over the next 12 months.
The figures come as part of the latest quarterly Halifax Housing Market Confidence tracker and showed that the overall balance for the number of people who expected house prices to rise, rather than fall, stood at +40 in June.
The reading is seven points higher than the figure recorded in the previous quarter (+33), as well as being the highest recorded since the tracker began in April 2011.
“Sentiment regarding the outlook for house prices has improved markedly over the past quarter, continuing the trend seen since late 2012,” said Martin Ellis, housing economist at Halifax.
“This increase in optimism is partly due to house prices being stronger than expected in the first half of the year. We continue to see a clear north / south divide with significantly higher proportions of people expecting prices to rise in the south than elsewhere in the UK.”
Those living in the capital proved to be the most optimistic when it came to a potential upturn in the housing market, with almost three-quarters expecting prices to soar over the coming year.
Consumers in the North-West were most pessimistic about the housing market making a bounce back, with just 35% expecting prices to rise over the next 12 months.
The research also highlighted that government housing schemes such as the New Buy and Help to Buy equity share schemes, are having a positive impact on the housing market.
Despite consumers’ renewed faith in the housing market, Ellis argues that factors such as a gap between a rise in earnings and house prices, could act to keep house prices down.