Housing market confidence falls

1 December 2020 | General

Confidence in the housing market has cooled, though more people still think house prices are rising than falling, Halifax’s House Price Sentiment Tracker for November has found.

Some 14% of people said they think their home has become more valuable, compared with 17% in September and October.

Halifax’s house price sentiment tracker fell from 52.4 to 51.6 in November – figures above 50.0 indicate that people believe prices are increasing

Tomer Aboody, director of property lender MT Finance, said: “Confidence is always key for the housing market. Current sentiment continues to be strong, with the perception that prices will continue rising in the near future at least.

“This is persuading buyers to purchase now rather than wait in the hope that prices may fall.

“Interesting times are on the horizon however, with the first quarter of next year seeing the end of furlough and the stamp duty holiday, plus the Budget.

“Future sentiment is therefore very much in the hands of the Chancellor, who has some difficult decisions to make.

“The continued confidence being demonstrated by buyers suggests that they are not worried as yet and plan to take advantage of continuous low interest rates.

“The potential of high LTV mortgages, as set out by the government, and the probable extension of stamp duty relief, would also keep sentiment strong.”

This post has originally been featured in Property Wire.