UK housing market confidence 'back to pre-credit crunch levels' » Housing » 24dash.com

People's confidence in the housing market has returned to levels last seen before the credit crunch struck, research showed today.

Around 81% of people expect house prices to rise during the coming six months, predicting average increases of 5.4%, according to property website Zoopla.co.uk.

The figure is a significant turnaround from a year ago, when only one in five people expected property values to increase during the first half of 2009.

The group said people's confidence in the housing market suggested the number of homes changing hands would begin to increase during the coming months.

But three-quarters of those questioned said they did not think it was any easier to get a mortgage now than it was three months ago.

Nicholas Leeming, commercial director of Zoopla.co.uk, said: "This time last year, confidence in the property market was at rock bottom and the outlook was bleak.

"But a year is a long time in the housing market and, whilst the recovery is still in its infancy, optimism is now back to levels not seen since the credit crunch began in 2007.

"The shortage of homes for sale has prevented any improvement in transaction levels over recent months, but with increased confidence amongst owners about putting their homes on the market to match the pent-up demand from buyers, we could see a welcome boost to the recovery of the housing market."

People in Scotland are the most optimistic about the housing market, with 84% expecting house price gains during the coming six months, while those in Northern Ireland are the least confident, with only 68% predicting property values will rise.

Zoopla.co.uk questioned 10,732 users during December.