Confidence in housing market lowest in a year

Homeowners are cautiously optimistic about the property market, according to the latest Zoopla housing market sentiment survey.

Homeowners’ expectations of rising prices over the next six months is now 55 per cent, down from 59 per cent three months ago, and average price growth prediction fell from 2.7 per cent to 2.2 per cent over the last three months.

Respondents believed their properties would fare better than the average and expected to see their properties’ value increase by an average 2.8 per cent in the next six months.

This compared to 2.2 per cent for other homes in their local area.

Only 24 per cent of homeowners thought the value of their own property would drop in the coming six months, and 29 per cent expected house prices in their area to fall.

Greater homeowner confidence in the London housing market continues to buck national trends and the overall economic outlook, as 72 per cent of London homeowners anticipated average values in the capital to rise over the next six months, up from 68 per cent last quarter.

London homeowners believed property prices would grow by 4.7 per cent over the first half of 2012, up from the 3.6 per cent expected last quarter.

Nicholas Leeming of Zoopla said: “Many overseas buyers continue to pile into London property to take shelter from economic or political storm clouds elsewhere which is helping to boost prices and confidence in the capital.”