UK house prices: Most homeowners think their house price will rise - even though house prices are falling

Helen Cahill
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The public is very confident about UK housing (Source: Getty)

Nine in 10 homeowners are now confident that property prices will continue to rise, a recovery from a lull in confidence that set in at the end of last year.

A survey from property website Zoopla has found 87 per cent of homeowners think house prices will rise in their area over the next half year, up by four per cent since October 2016.

Read more: Talk of a “stagnating” housing market is unhelpful for sellers and buyers

And everyone seems particularly optimistic about how their property will fare in the next six months. Survey respondents think prices will rise by an average of 7.8 per cent over that period.

However, recent data from Halifax showed that UK house prices fell by 0.2 per cent in the last quarter.

And, Zoopla found that only 18 per cent of homeowners plan to buy a property in the coming months, down seven per cent since October, and 17 per cent plan to sell, down six per cent, figures which reflect the overall slowdown in the second hand housing market over the past year.

Read more: UK house prices: First quarterly fall since 2012 as annual growth stagnates

Lawrence Hall, spokesperson for Zoopla, said: "Despite a continued period of political uncertainty, it's encouraging to see a rise in confidence for property price growth.

"However, despite this, we can't ignore that there's been a rise in reluctance to buy and sell properties. With the upcoming General Election, it's perhaps no surprise that people may be holding out to make a sale decision until after 8 June."

Property firm Savills has also expressed concerns about the impact of the upcoming General Election on the property market, saying in a statement earlier this week that it expects transactions to fall over the next month.

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