Confidence in the UK housing market is stuck at an all-time low, but only London residents believe that the next 12 months would not be a good time to sell a property.
According to the latest housing market research from UK bank Halifax, only half of Britons expect house prices to rise, down from 58 per cent last year, meaning confidence in house prices has remained at its lowest level since 2013.
However, the Halifax survey showed that fewer people are now negative about the housing market overall, with just 17 per cent predicting a fall in prices over the next year, down from 20 per cent six months ago.
As house prices in parts of London continue to slump, only residents of the capital feel that this is not the year to to sell a property, according to the Halifax survey.
Young people under 25 were the most pessimistic when it comes to buying or selling property in the UK, while those aged between 55 and 64 were the most confident.
Commenting on the results, Russell Galley, Halifax managing director said: “Housing market optimism remains at a five year low and this echoes the subdued house price performance and activity levels we have seen since the end of last year, albeit set against a positive outlook for the majority who believe house prices will increase over the next 12 months.”
Less than a third of existing mortgage borrowers said they were concerned about the possibility of rising interest rates affecting their ability to meet their monthly repayments, a sharp decline from from 42 per cent in 2014.
“With mortgages the most affordable they have been in a decade, it is perhaps unsurprising that a proportion of people remain unconcerned by the prospects of a base rate rise,” said Galley. “This research suggests that for the majority of mortgage holders, there would need to be multiple rate increases before the affordability of their repayments becomes an issue.”
The Halifax results come after the Office for National Statistics revealed that the UK GDP grew by just 0.1 per cent during the first three months of the year, making a Bank of England rate rise in May seem even more unlikely.