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Market Confidence High As Homeowners Predict Prices Will Continue To Rise

MARKET CONFIDENCE HIGH AS HOMEOWNERS PREDICT PRICES WILL CONTINUE TO RISE

Three quarters (75%) of homeowners believe house prices will continue to rise over the next year, according Your Move, the largest single estate agency brand in the UK.

The average growth predicted by all consumers surveyed by Your Move is for house prices to rise by 2.8% in the next year. This is the equivalent to a £4,600 increase in value for the average property, according to the latest Land Registry figures. Just 4.8% think house prices will fall in the next twelve months. Overall consumers thought house prices will rise 5.4% in the next two years, and 11% in the next 5 years.

According to the survey, nearly nine in ten homeowners (87%) believed their property had increased in value since they purchased it. The average homeowner has owned their house for over 8 years and believes their property has gained 64% in value. According to Land Registry figures, a 64% increase over this period of time (Dec 2001 to Mar 2010) would represent an increase in value of £62,064. But for the same period the average house price has actually risen by £67,313, an increase of just under 70%. This means that the average home could be worth £5,249 MORE than the typical homeowner estimates. 12.5% of homeowners thought their home is now worth 2-3 times the price they paid for it originally. This supports the mantra that home ownership remains a good long term bet. David Newnes, Estate Agency Managing Director of LSL (owner of brands Your Move and Reeds Rains), comments: “People haven’t woken up to the extent of the

Buying a house remains the goal for the vast majority of non-owner occupiers. Of non-owners polled, 91% are looking to buy in the near future. Two-thirds state that a house will give them greater long term stability to build a life in the area or have children, while 55% think it’s a great investment.

David Newnes continues: “Buying a house is not just a financial investment, but an opportunity to create stability for a family, lay down roots in a community, or personalise a home in ways that renting doesn’t allow.”