Property prices will rise by an average of 1.4 per cent over the next year as cautious optimism returns to the housing market, according to the Building Societies Association (BSA).
The prediction is in stark contrast with the last time the Property Tracker survey was conducted in March, when the average prediction had been for a fall of 6.1 per cent.
The sense of a re-emerging feel good factor has been heightened further after the number of people that said now would be a good time to buy a home increased to 59 per cent, compared with 54 per cent in March and just 27 per cent in June last year.
"People clearly recognise that with both property prices and mortgage rates having fallen, there are potential bargains to be found meaning that now is a good time to buy," said Paul Broadhead, head of mortgage policy at the BSA.
"However, improving job security will be key to any substantial recovery of the housing market.
"People clearly recognise that with both property prices and mortgages rates have fallen, there are potential bargains to be found meaning that now is a good time to buy."
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