More Britons Expect House Prices to Rise Next YearScott Hamilton
Britons’ confidence in the housing market has risen, with more consumers forecasting price gains than declines in the next year, a survey by Halifax showed.
A gauge of the housing market measuring value expectations climbed to 40 in June from 33 in March, the mortgage unit of Lloyds Banking Group Plc said in an e-mailed statement in London today. June’s reading was the highest since Halifax began the quarterly survey in April 2011. Fifty-two percent of respondents predict prices will advance over the next 12 months, with 12 percent forecasting decreases, it said.
“Sentiment regarding the outlook for house prices has improved markedly over the past quarter, continuing the trend seen since late 2012,” Halifax economist Martin Ellis said in the statement. “Nonetheless, the market still faces substantial headwinds with, for example, house prices remaining above the historical average in relation to earnings. Such factors are likely to prevent a sharp acceleration in house prices.”
The survey chimes with recent housing data that have shown an improving market. Reports from Hometrack Ltd., Acadametrics Ltd., and Nationwide Building Society all showed values rose in June as the Bank of England’s Funding for Lending Scheme and the government’s Help-to-Buy program eased the supply of credit.
Halifax questioned 1,959 adults between June 21 and June 27 for today’s report.