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Property outlook remains positive

Property outlook remains positive

Category: Mortgages

Updated: 10/02/2010
First Published: 10/02/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Almost two thirds of prospective homebuyers still believe now is a good time to buy, despite a slight drop in sentiment over the last three months, a new survey has revealed.

Concerns about the outcome of the election and the ongoing uncertainty over the economic recovery are thought to have cast slight doubts in more people's minds, according to Rightmove.

However, with just one in ten people feeling it is a bad time to take the plunge on a property, down 5% on the same point a year earlier, the outlook for the UK property market remains positive.

Despite the apparent optimism, one factor that might pose a problem is the dearth of sellers currently willing to put their property on the market.

Just 5% believe now is a good time to sell, compared with 65% who believe it to be a bad time.

"One of the main issues behind the lack of property coming to market is the limitation of available mortgage finance which prevents sellers from moving up the chain," said Miles Shipside, commercial director of the property website.

"We will need to see a continued easing in available finance for confidence to return fully amongst those looking to sell."

Meanwhile, there has been a huge swing in sentiment regarding which direction house prices will move in the coming 12 months.

More than half (53%) now believe prices will rise over the coming year, compared with just 10% who thought they would at this point in 2009.

"The property market is in a virtuous circle scenario, where consumers are seeing less property up for sale and property fresh to the market is selling more quickly," added Shipside. "That rightly gives them the impression that we are over the worst of the recent price falls, and that there is likely to be some upward pressure on prices."

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