House hunters expect price rises, but remain uncertain about buying

Wednesday, 17 March 2010 10:44

By myfinances.co.uk staff

House hunters' confidence in the market "remains fragile" despite expectations that prices will rise over the next 12 months, the Building Societies Association (BSA) has said.

Its latest Property Tracker survey of 2,200 people forecast that house values will rise by 2.2 per cent over the coming year.

However, only 49% of respondents thought it is a good time to buy, down from 58% in December 2009.

The BSA said that this is the first time that this figure has dropped below half since December 2008.

Paul Broadhead, the association's head of mortgage policy, said that the uncertainty about buying was "no surprise" because consumers will be waiting to see the effect of the end of the stamp duty exemption for properties valued at £125,000 to £175,000.

Next week's Budget and the upcoming general election muddy the outlook further, he added.

"Once the election is over and people are more confident about the economic outlook, we hope that buyers will return to the market," Mr Broadhead said.

According to Nationwide, the average UK house price stood at £161,320 last month.

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