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Rightmove: house price optimism on the up

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 13 May 2012  |  Comments 13 comments

A new survey by Rightmove has revealed a growing expectation that house prices will rise over the next year.

Rightmove: house price optimism on the up

The latest Consumer Confidence Survey from Rightmove has found the highest level of house price optimism in nearly two years.

More than a third of the 40,000 home movers surveyed said they expected house prices to be higher one year from now, the highest level since the third quarter of 2010. The number of respondents expecting house prices to fall over the next 12 months was also at its lowest level, at just 20%, for seven quarters.

Mortgages hold the key

For both price optimists and pessimists, the key to their level of confidence is the mortgage market.

Those predicting house price growth pointed to an improving mortgage market (35%), with continued low interest rates also a factor (14%)

Yet those who are expecting price falls pointed to little to no improvement in mortgage availability (33%), the required high deposits (16%) and the threat of rising interest rates (15%).

Fair and reasonable prices

While a significant chunk of those surveyed expect house prices to rise over the next year, almost half (46%) still believe that current house prices are above ‘fair and reasonable’ levels.

What do you think? Will house prices rise over the next 12 months? Or are they still above ‘fair and reasonable’ levels? Let us know what you think in the comment box below.

More on property:

Buy to let: confident landlords expanding portfolios

DIY spending falls to record low

How to make a rented house a home

Million borrowers face jump in mortgage repayments

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Comments (13)

  • MikeGG1
    Love rating 878
    MikeGG1 said

    I can't see the slant in the article. Optimism before was less than a third so it is on the up. Also there was no opinion given - just reporting of one single survey! Our Editor is sitting on the fence again and asking us. Normal journalists manage opinions on much less basis.

    So far as UK is concerned, we have a huge shortfall of housing in the South East which is helping prices to nudge up a bit.

    Elsewhere there is an over-supply so prices are falling. What we need are government policies to correct the imbalance. Directing immigration away from the South East might help. Currently most of them come to the SE.

    Expect prices to fall again when interest rates eventually rise. Mortgages are currently much more affordable due to low interest rates. However, the shortage in the SE will help to keep those prices high.

    Mike

    Report on 18 May 2012  |  Love thisLove  0 loves
  • nickpike
    Love rating 270
    nickpike said

    hopefultom said

    Nickpike

    For the last 3 years you have been forecasting a 50% drop in property prices; now you say that you" cannot believe the drop in prices just North of Birmingham "

    Are we to assume from this that prices in that area have fallen by more than 50% ?

    They have dropped significantly but not 50% as yet. The politicians have been wasting huge sums of money supporting the zombie housing market and have delayed the crash. What will bring down prices to the bottom of the curve is mortgage rates as opposed to Bank of England rates now, as they have now become detached, due to lending criteria for the banks getting tighter as the economic situation worsens. We are seeing some nice detached stuff at 130k which was considerably higher in 2007. We are seeing more and more repossessed houses.

    Prices will collapse the full 50%, and possibly more now, it is a mathematical certainty, and maybe it's now happening seeing that the politicians have only added to the damage created by previous politicians.

    The macroeconomic situation is so severe now, there is no way prices can be supported. Look at what's happening in Greece, a lot of which is not being reported. Don't think we are immune.

    Report on 18 May 2012  |  Love thisLove  0 loves

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