A recent study conducted in the UK by Halifax, found that buyers’ confidence in house prices rising in the next year has weakened in the last few months, amid continued economic uncertainty.
Just over a third of people polled believe that homes in the UK will increase in value over the coming 12 months, compared with almost a fifth who predict a decline.
Official figures released earlier this week showed a North-South divide in the housing market, with prices having risen in England and Wales over the last year but falling in Scotland and Northern Ireland.
House prices increased by 2.3% in the 12 months to May, reaching £228,000 on average, the Office for National Statistics (ONS) said, but if London and the South East were stripped from the figures, the typical price would be £183,000.
Beneath the surface, much of the increase was driven by a 7.2% rise in London, which has had strong interest from overseas buyers, making it the biggest rise seen by the English capital since November 2010.
The Halifax study found that people living in London and Wales were the most likely to believe that prices would increase, while those in the East Midlands and the North East were the least likely to predict rises.
Estate agents recently reported that the first-time buyer share of the market reached a seven-month low in May, following the ending of a stamp duty concession for this sector of the market. Lenders have also been tightening their credit criteria and borrowing is expected to become tougher in the coming months, particularly for people with low deposits.
