Home buyer confidence 'back to 2007 levels'

Posted: 08 Apr 2010 11:43:45 GMT

Confidence in the housing market is at its highest point since the economic downturn began, new research has shown.

According to a survey by Zoopla.co.uk, 81 per cent of homeowners expect property prices to continue rising over the next six months, with an average increase of 5.7 per cent expected.

The figures are in stark contrast to those recorded in the same survey last year, which found that just 30 per cent of people believed house prices would rise in the near future.

Nicholas Leeming, commercial director of Zoopla.co.uk, said that while confidence in the property sector has rebounded well since the economic downturn, there remain significant hurdles to its recovery.

"Despite the optimism, significant concerns around the supply of mortgages and whilst affordability levels are now higher than at any time in the past few years the lack of mortgage funding, especially for first-time buyers, remains the single biggest threat to a full housing market recovery," he added.

Andy Pratt, chief operating officer at mortgage broker Alexander Hall, recently claimed that mortgage lenders are becoming increasingly confident about the state of the property market and as a result, are offering lower home loan rates.


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