Property market to strengthen in 2006

Monday, 05 December 2005 12:00

Two new surveys are pointing to a stronger property market in 2006.

Both Propertyfinder.com and Linden Homes have said that, after 2005's slowdown, 2006 will be a year of growth in market activity and house prices.

Propertyfinder's research reveals today that the number of homes being bought and sold is set to increase strongly in the new year, as optimism grows that prices are set to rise again in 2006.

"Househunter confidence is on the up and although we don't expect prices to rise strongly, there is no doubt that people are no longer afraid to move," said Jim Buckle, managing director of Propertyfinder.

Research from the firm shows that 60 per cent of the public expect property prices to rise over the next twelve months, up from 24 per cent at the same time last year.

"The sharp increase in the number of people looking for homes adds further credence to our predictions of more transaction volumes for the new year. More buyer interest means more sales."

And last week, housebuilder Linden Homes predicted a two per cent rise in property prices in 2006.

This would be driven by the pent-up demand produced from a year when buyers held back, waiting for a crash. As it has become increasingly evident that this will not occur, people are now returning to the market.

Philip Davies, the firm's chief executive, commented: "I am not expecting any big surprises from the housing market in 2006. Current levels of activity are likely to continue, with a general lowering of price expectations among vendors underpinning a steady flow of transactions into the spring.

"I expect to see sold signs shooting up with the daffodils as vendors come out of hibernation with more realistically priced homes, determined to shift properties that have stuck during the uncertainty of the last year."

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