Housing market confidence takes a knock as job losses worry owners
CONFIDENCE in the housing market dipped slightly last month, as worries about interest rate rises and job losses loomed over homeowners, according to a survey released yesterday.
Just over three-quarters of homeowners believe property prices will rise in the next six months, down from 81 per cent who predicted gains in April.
Around 27 per cent think it is harder to get a mortgage now than three months ago, while 23 per cent think it is easier, said 5,442 homeowners surveyed by property website Zoopla in early June.
Scottish households were most upbeat about the future, with 84 per cent forecasting a rise in house prices in their area over the next six months, while Northern Ireland homeowners were most pessimistic with 67 per cent predicting a jump in property values.
Respondents’ biggest concerns for the health of the housing market were higher interest rates, which were cited by a quarter of homeowners as a threat to recovery, and public sector job losses, which were mentioned by around one in five people.
“Confidence amongst homeowners remains high for the time being, but the dip does signal a directional shift as concerns are building again around the outlook for the property market,” said Zoopla commercial director Nicholas Leeming.
“The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase their willingness to lend.”