This is up from 8% in January 2012 and equates to around 5.1 million property owners, the research from Santander Mortgages shows. Also 57% of potential buyers feel more positive about prospects and over half of owners think house prices will increase.
It says that the government’s Help to Buy scheme is a major cause of increased confidence, with 33% of those who think they will purchase in the next 12 months saying they are likely to get assistance from it.
The findings reveal that younger people are the most likely to buy, with 18% of those aged 18 to 34 saying they are likely to purchase a new home. This is compared to 9% of 35 to 54 year olds and 5% of those aged 55 or over.
The research also shows that Londoners are the most likely to buy a home in the next year with 20% indicating they would do so, while just 2% said so in Wales. A year ago this was 13% and 7%.
Owners in the West Midlands, the North West and the North East are also more proactive than the rest of the country with 16%, 12% and 11% saying they are likely to buy in the next 12 months. This is up from 7% for the West Midlands and the North West a year ago and 9% for the North East.
Home owners in Yorkshire and Humber, Northern Ireland and the East Midlands are less confident with 6% in Yorkshire and Humber and 5% in Northern Ireland and the East Midlands saying they are likely to do so.
Of those who are likely to buy a new home this year, some 33% will be first time buyers, while 32% are already home owners and intend to move. A further 13% will be buying an additional property to the one they already own and 11% plan to buy to let.
Of those who feel they are unlikely to buy a new home this year, the most significant obstacle is not having enough money for a deposit with 16% in this position. This is a particular problem for those aged 18 to 34 with 32% in this age group giving it as a reason for not purchasing in the next 12 months. This is, however, significantly less than the 42% of 18 to 34 year olds who claimed this was an obstacle a year and a half ago, further supporting the argument that the Help to Buy scheme is having a positive effect on confidence.
Some 11% say they can’t afford to buy in the area they want to live in and 8% are simply unable to get a mortgage. Also 5% say they can’t find a property they like within their price range, an additional 4% unemployment is the main reason for not buying and 3% say it’s because they are worried about losing their job. Others have made a conscious decision not to buy, with 4% preferring to rent.
Home owners are very confident that house prices will rise this year, with 57% of them anticipating an increase in the value of their property compared to just 4% predicting a fall in value. This is a significant increase in confidence since the beginning of 2012 when 29% anticipated a price rise compared to 17% expecting a fall. Some 37% expect their property’s value to remain static over the next 12 months.
Those in London are the most confident that the value of their home will increase, with 79% believing it will do so compared to only 2% who believe it will fall. Indeed, optimism is greatest all over the South of England, with 64% of home owners in the South East and South West expecting the value of their home to appreciate.
‘The UK has seen a number of encouraging economic statistics emerging in recent weeks and months and our findings suggest a significant increase in confidence in the housing market,' Help to Buy is certainly stimulating the market,’ said Phil Cliff, director of Santander Mortgages.
