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Experience Invest

UK Housing Market Confidence Remains Strong

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You’ve arrived at the Experience Invest blog. We strive to keep you up-to-date on all the latest British property market news and analysis. A new study has indicated that UK housing market confidence held strong in the closing quarter of 2015.

Market Confidence Tracker

Lender Halifax has just released its latest quarterly Market Confidence Tracker Index. Online industry portal Property Wire reported that the Index showed that UK house price confidence remained strong in the last three months of 2015. 61% of respondents think residential property values will keep increasing in 2016 – this is down from 68% in May but still represents the majority of opinion. Furthermore, 13% of respondents believe house prices are set to rise by at least 10% this year.

Commenting on the release of the Index Craig McKinlay, Halifax mortgages director said: “Solid economic growth, rising real earnings and falls in already very low mortgage rates are all stimulating housing. At the same time, there is an increasingly acute imbalance between supply and demand, which is causing property prices to rise at a robust pace.” Continuing, McKinlay added: “This situation, which is unlikely to reverse significantly in the short term, is reflected in the public’s continuing high levels of optimism regarding house price growth over the coming 12 months.”

Consumer sentiment

The Index found that positive selling sentiment rose in the last three months of 2015. Over half of respondents (55%) said that the next year would be a good time to sell a home – a 3% rise from the quarter before. In contrast, just 29% said that the next 12 months would be a bad time to put a property on the market – down 3% from the previous Index.

Halifax also looked at positive buying sentiment – whether people believe the next year will be a good time to purchase a residential property. Positive buying sentiment increased one point to 54% in the last quarter of 2015, while negative buying sentiment dropped two points to 31%. Meanwhile, 39% of people said that 2016 would be a good time to buy and sell a property, a rise of three points from the quarter before and just 15% said that next year will be a bad time to do both.

Buying barriers

Halifax also asked people about the biggest barriers to buying a residential property. Over half (58%) said that ‘raising a deposit’ is the most significant barrier to purchasing a residential property, a rise of one point from the last quarter. ‘Job security’ followed at 42%, while 37% cited rising property prices as the biggest barrier; average UK property values increased by 10% in 2015.

Speaking further, McKinlay explained: “Difficulties in raising a deposit, concerns about job security and high property prices remain the main barriers to people buying a home. The proportion identifying rising prices has risen to the highest in the survey’s history. The decline in affordability that this highlights is expected to dampen housing demand and property price growth over the medium term.”

Experience Invest

Experience Invest is a London-based independent property company specialising in residential investments, student property and care home investments. The company operates across the UK and internationally, and is regularly featured in the property news – see The Telegraph, on Yahoo Finance, and by Reuters for examples of recent articles.

Experience Invest works with a range of clients, from first time investors to high-net worth individuals, offering them unique access to properties not always available to individual investors.