Survey shows confidence in UK housing market increasing

Confidence in the UK housing market is leading to an increase in positive selling sentiment, with 56% thinking it is a good time to sell in the next 12 months, according to a new survey.

This exceeds those who think it will be a bad time to sell and the highest score of this measure since the Halifax Housing Market Confidence tracker survey began in April 2011.

The survey also shows that sentiment towards selling is even stronger amongst owner occupiers with 62% stating that now is a good time to sell.

Regionally, positive sentiment towards selling is highest in the East and South East, where 65% think it will be a good time to sell, compared with only 36% in Scotland.

‘We’ve seen a strong start to the year with transaction volumes rising, with the overall sentiment regarding the outlook for the housing market continuing to improve,’ said Craig McKinlay, mortgages director at the Halifax.

‘The increase in optimism is partly due to stronger house prices and this shift could provide a much needed increase in the supply of properties available for sale during the rest of the year,’ he added.

The findings of the survey indicate that sentiment towards buying has remained relatively stable since the fourth quarter of 2013, with 60% of respondents expecting it to be a good time to buy in the next 12 months compared with 26% who think it will be a bad time to buy.

Nearly three quarters, some 71%, predict the average UK house price will rise over the next year with 38% expecting it to rise between 5% and 15%, and 3% who think the rise will be even higher.