A survey carried out by property website Rightmove has found that 35 per cent of movers expect house prices to be higher in 12 months than they are now. This is the highest the statistic has been since 2010, whilst the number expecting prices to fall over the same period is at its lowest, just one fifth of the 40,000 people surveyed.
Another study by Zoopla suggests that sellers are less likely to drop their asking prices or offer a discount than they were 3 months ago. This survey suggests that demand is strong enough for sellers to stick to their guns, in spite of the recent changes to stamp duty which brought about an increase in costs for buyers.
Estate agents have also raised concerns about a dip in the market, following a rush to buy before the stamp duty concession for first time buyers was removed in March. Many lenders have also raised their rates and made it more difficult for borrowers to get a mortgage in recent months.
Despite this, respondents to the Rightmove survey cited improvements in the mortgage market and the rock bottom interest rates being maintained by the Bank of England. Rightmove director Miles Shipside stated that: “Confidence plays an important role in motivating those considering buying to actually go through with it.”
Within the minority expecting to see prices fall rising interest rates as well as high deposits and lack of mortgage availability are cited as the main reasons. The report also found that the number of properties on the market is 35 per cent lower than in 2007, as more people continue to stay put hoping to ride out the storm of the continuing financial crisis..