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Property prices predicted to rise

Property prices predicted to rise

Category: Economy

Updated: 19/11/2009
First Published: 19/11/2009

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 It is now over 6 months old so the content may be out of date.

Confidence in the housing market continues to improve, after Rightmove revealed more than half of home movers expect house prices to be higher in 12 months time.

It means a stark turnaround in sentiment has occurred since the first quarter of the year, when 69% expected prices to be lower.

However, unsurprisingly, a bottleneck in the supply of properties coming to the market has been identified.

Anticipating the price rises, only 5% of sellers believe now to be a good time to sell, despite over 68% of people believing it is currently a good time to buy.

Meanwhile, with an election on the horizon, there is uncertainty over the conditions that home buyers will face next year.

Half of respondents expect conditions to be the same, while 25% think things will be better and 22% believe it will be worse.

"Elections create uncertainty, especially keenly fought ones," said Miles Shipside, Rightmove's commercial director. "Activity is often put on hold until the full intentions of the next government become clear.

"Whoever gets in, it will not be plain sailing for aspiring home-movers with austerity packages high on the political agenda of all the main parties. Those surveyed may feel that prices will increase, but that does not necessarily mean they are willing or able to purchase themselves, especially given the tight lending criteria required to access the best rates."

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