Confidence in UK property at five-year low

Confidence in the UK property market has slipped to its lowest level in five years, new figures show.

According to the latest Halifax Housing Market Confidence Tracker, which tracks House Price Optimism, the index has fallen by 38 points since the peak of +68 in May 2015 around the time of that year’s General Election.

Around half of those surveyed currently expect house prices to rise over the next year, the lowest level since April 2013 (45 per cent), whilst one in five think house prices will fall, the highest point since October 2012.

“Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market,” said Russell Galley, Managing Director of Halifax Community Bank. “Even with a potential base rate increase on the horizon, it’s significant that buyers’ concerns continue to be centred on raising deposits and job security and, as such, we do not anticipate that an increase in Base Rate will have a significant effect on the demand for properties,” he added.

Indeed, 61 per cent of those surveyed believed that the ability to raise a deposit would be the main barrier to buying a home, while 42 per cent highlighted concerns with job security.

However, when existing mortgage borrowers were asked about their concern in rising interest rates affecting their ability to meet their repayments, only around a third (36 per cent) were worried.

Article published 30th October 2017