Confidence in house prices is high

Posted: 18 Oct 2007 11:51:33 GMT

The majority of Britons remain confident that house prices will continue to rise in the long-term.

The majority of Britons remain confident that house prices will continue to rise in the long-term.

A total of 62 per cent of the general public told the Association of Investment Companies (AIC) that they subscribe to this view and 44 per cent of active investors agree.

Just 21 per cent of Britons said that they anticipate seeing the housing market stagnate, fall or crash and many (38 per cent) say that the market's strong performance up to now is the main reason why they invested in the first place.

Despite their confidence, 30 per cent of the general public and 43 per cent of active investors revealed that they believe the financial value/profitability of their properties is being affected by high interest rates.

They will be pleased then to hear that the Bank of England's Monetary Policy Committee voted 8-1 in favour of maintaining the base rate of interest for the third consecutive month in October, leading to an increased belief that rates will be cut before the end of the year.

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