Homeowners 'have confidence in market'

Consumers have a realistic view of the housing market and will not be spooked by a short-term fall in property prices, new research by Ipsos Mori has found.

The House Price Expectations report shows that although most buyers and buy-to-let investors accept that property prices could fall this year, a strong majority recognise the long-term benefits of keeping property.

Just two per cent of homeowners and one per cent of investors would sell immediately if property prices fell 15 per cent, while a sizable proportion (17 per cent of homeowners and 27 per cent of investors) would actually look to purchase more property.

"The findings suggest that households' confidence in the housing market is robust and points to the stability of the market if house prices were to fall," said Adrian Coles, director general of the Building Societies Association.

He added: "Growth in residential property prices has largely been due to a wide selection of factors including low interest rates, lack of suitable housing stock, a buoyant economy and the ingrained desire in the British psyche to own property."

Analysts say that the supply shortfall differentiates contemporary expectations of a post-boom housing market from historical situations, which were usually followed by property crashes.

Related Articles