A looming interest rate hike has failed to dent the outlook for house price growth in the UK.
Halifax’s quarterly housing market survey revealed house price inflation is at nine per cent yet optimism remains high, with 68 per cent of Britons expecting average property prices to be higher in 12 months’ time and just five per cent expecting them to be lower.
However, the proportion of people who believe the next 12 months will be a good time to sell fell seven percentage points to 52 per cent, its lowest level for a year.
Londoners also lack in optimism – just 40 per cent said they thought it would be a good idea to buy a house over the next year.
There was spike in the number of people, 58 per cent, who expect mortgage rates will be higher in 12 months’ time, compared with 48 per cent in the previous quarter.
Craig McKinlay, mortgage director at Halifax, said: “The factors behind the upward pressure on house prices include the continued lack of second-hand properties for sale on the market and the availability of low mortgage rates.”