Monday 26th July 2010

Four in ten people who are planning to move home believe that buying now makes financial sense as they are confident house prices will rise over the next year.

Altogether, three-quarters of home movers believe that prices will either stay the same or go up.

Rightmove reported this morning from a survey of 20,000 prospective home movers.

But while confidence remains bullish, it has fallen: the 75% who believe prices will stay the same or rise compares with the 84% of price optimists recorded in April.

Miles Shipside, Rightmove commercial director, said: “A 9% drop is a significant shift. However, three-quarters of people still believe that prices will either be the same or higher in 12 months’ time. This suggests that either the government cuts have not yet bitten hard enough to knock the inherent belief in property as a long-term safe bet, or there is a strong sense that the property market’s dark days are behind us.”

He added: “With austerity measures starting to bite, a growing nervousness is to be expected.”

Rightmove itself has just recorded a drop in asking prices and is predicting that further falls in the second half of this year will wipe out gains in the first half.

 

The number of house-hunters registered per branch increased slightly from 265 in May to 279 in June.

Demand for property increased from May to June. Although fewer sales were agreed, the rise in those registering might suggests that potential homeowners continue to feel that a bargain could be had in property and do not credit speculation that house prices could fall again this year. This demand will need to be met with increased mortgage availability in future, if more house hunters are to be encouraged to enter the market.