Despite the fact that interest rates have been frozen and that the average price of a property in the UK continues to rise, confidence in the market has slowed.
According to the new Halifax Housing Market Confidence Tracker, the headline House Price Outlook balance slipped to +58 in April, in comparison to +64 in March. The balance is worked out by taking the number of people who believe in the UK that expect property prices to rise, minus those that believe that it will fall.
Similarly, the proportion of people asked that believe the next year will be a good time to buy is up from +21 in March to +26 in April. Furthermore, those who will believe that the next twelve months will be a good time to sell is down from +33 to +30.
Results from the report also show that 63% of people questioned believe that property prices will be higher in a years time, down from 67% in March. This dip comes despite a number of positive factors for the market. Record low mortgage rates, negative inflation and frozen interest rates should give consumers more confidence in the market.
This is certainly the view of Craig McKinlay, Halifax mortgages director, who stated that, ‘with inflation now at its lowest level since records began, unemployment falling, and the economy still growing, the fundamentals for the housing market remain positive. Going forward the key factor in how consumers adjust to any changes in rates will be the way in which they manage their disposable income.’