Some 89% of home owners expect house prices to rise over the next six months, up from 80% in the previous quarter, according to the latest Zoopla Housing Market Sentiment Survey.
Signalling surging confidence in the housing market, the survey of 9,140 home owners by Zoopla found that only 4% of now predict house prices will fall over the next six months, down from 7% in the second quarter and well below the 17% recorded in the third quarter of last year.
In another indication of growing optimism in the British property market, for the first time in three years owners are expecting property prices to rise by over 5% in the next six months.
The data shows that home owners are predicting an average 5.7% increase in home values in their area between now and March next year, up from 4.8% last quarter and 3.4% the same time last year.
However, despite the continued rise in home owner confidence, there has been a slight decline in those planning to buy or sell a property over the next six months, falling under one fifth for the first time in 2013 at 19% and 17% respectively. But 66% of home owners accredit evidence of property sales in their local area as the reason why they perceive the property market to be on the up.
With the next phase of Help to Buy taking effect and lending to first time buyers at its highest since 2007, confidence in mortgage availability has also risen to a four year high.
In comparison to this time last year, the proportion of home owners who believe it is easier to get a mortgage compared to three months previously has more than tripled, up from 11% in the third quarter of 2012 to 37% in the third quarter of 2013.
Londoners continue to be the most optimistic about the British property market, with 97% expecting a rise in house values in their area over the next six months. Owners in the capital predict average growth of 8.3% over this period, some way above the nationwide UK average of 5.7%.
Home owner confidence in the property market is significantly higher in the South. Despite relatively high levels of confidence Yorkshire and the Humber, the North East, North West and Wales are the regions with the lowest percentage of homeowners predicting rising home values by March next year, all at 84%. But across the UK, all 11 regions have seen an increase in the percentage of home owners who think house values will rise over the next six months.
The most significant increase in home owner confidence has been in the West Midlands and Yorkshire and the Humber, where the proportion of owners who believe property prices will increase over the next six months has risen from 78% to 90% in the West Midlands and 72% to 84% in Yorkshire and the Humber in the last quarter.
‘While London remains the forerunner in home owner optimism, confidence in the property market is surging across the whole UK. Confidence is the bedrock for healthy property transactions but it can’t work in isolation,’ said Lawrence Hall of Zoopla.
‘Fortunately, mortgage lending is on the rise, first-time buyers are returning to the market, and the second phase of the Help to Buy scheme should help boost confidence further across the country and not just in London. All of this bodes well for a healthier market and could lead to more and more transactions, which in turn will create a more sustainable market,’ he added.
