Housing market confidence cools in November
Confidence in the UK housing market cooled in November, with fewer people thinking that their property increased in value compared to last month.
Bankers Halifax said that just 14 per cent of people surveyed said that they believed their home had become more valuable this month, compared with 17 per cent in September and October.
Despite the slip, the figure remains high above the four per cent recorded during the first national lockdown in May.
As a result of the decrease, Halifax’s house price sentiment tracker fell from 52.4 to 51.6 in November.
Any figure above 50.0 indicates that people believe prices are increasing and any figure below 50.0 that they are decreasing.
More people think their house will be worth more in 12 months’ time than those who think it will be worth less, in a sign of increasing optimism in the housing market.
Just over a quarter (27 per cent) of households believe the value of their home will have increased by this time next year. In May the figure stood at just 16 per cent back.
The reversal in fortunes is also in evidence in the fact that only 18 per cent of people believe that their house will be worth less in 12 months time – down from 34 per cent in May.
Russell Galley, Halifax Managing Director, said: “UK households remain broadly confident in the strength of the property market.
“The perceived rate of house price growth weakened slightly during November but is
nonetheless above average and a noticeable reversal from the period of negative sentiment we saw between April through to August.
“People also remain cautiously optimistic that property prices across the country will be higher in 12 months’ time. However, expectations softened from October, and remain subdued by historical standards.
“This is unlikely to change significantly while the macroeconomic landscape remains uncertain, with most housing market experts predicting greater downward pressure on house prices as we move into 2021.”