Homeowners in bullish mood

Two thirds of homeowners expect British house prices to rise over the next six months, says new report.

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The Independent Online

Homeowners are more confident now about the outlook for the British property market than they were at this time last year.

According to the latest figures from Zoopla, one of The Independent's partners, nearly two-thirds of homeowners surveyed believe that house prices in their area will rise over the next six months, up from 59 per cent at this time in 2011.

Only one in five homeowners expect property prices to fall during the next six months, down from 26 per cent last year.

The level by which homeowners expect house prices to rise has also improved over last year with the average homeowner now predicting a 3.4 per cent rise in their local property prices over the next six months, up from 2.7 per cent last year.

Interestingly, homeowners remain more confident about the performance of their own homes - expecting them to rise by 3.8 per cent - than those of their neighbours.

London’s homeowners are the most optimistic about the state of the British property market. Just over 80 per cent of owners in the capital believe prices will rise in their area over the next six months. Owners in Northern Ireland are the least optimistic with just 53% expecting property prices to rise by March 2013.

“Late summer and early autumn are busy periods for the property market which can lead to a boost in homeowner confidence," said Lawrence Hall of Zoopla.co.uk. "The fact that optimism is up compared to last year is a good sign, however, confidence levels remain well below the levels seen in late 2009 and early 2010."