London Homeowners Optimistic

New figures released by the Halifax show that confidence in house prices is soaring, with Londoners feeling the most optimistic.

According to the bank's Halifax Housing Market Confidence Tracker, almost a third of Brits feel that house prices will rise rather than fall this year.

Some 29 per cent now feel home values are on the up, compared to 22 per cent who feel a fall is on the way.

But in London the number of people predicting a rise is far greater. Indeed the percentage of those who feel an increase in values is likely dwarfs the pessimists by a whopping 21 per cent.

Half (50 per cent) of those questioned said that they feel now is a good time to buy, while just ten per cent said that they feel it is a seller's market a present.

Martin Ellis, housing economist at Halifax, said: "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies.

"Looking forward, we currently expect broad stability in house prices in 2012, although there remains much ambiguity around this given the considerable uncertainty regarding the prospects for the UK economy."

Another key finding of the research is the fact that 61 per cent expect rental prices to rise in the next 12 months, while just three per cent foresee a drop.

While both house prices and rental values are seemingly on the increase, another study conducted by the Halifax recently found that for many people owning a home has never been cheaper.

On average first time buyers are paying 27 per cent of their monthly income towards their mortgage, making it the lowest level since 1997 and some 20 per cent lower than the figure stood in late 2007

London Property News