House Prices Survey: 51% Say House Prices Will Continue Rising

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Most people in the UK think house prices will continue to rise, according to a new survey by consumer website Creditchoices.co.uk.

51% say house prices will keep rising

At the same time, mortgage providers are softening their deposit requirements slightly and trimming mortgage rates.

Over half (51.6%) of Brits believe that house prices will be higher in six months time, according to a survey of 1040 users of consumer financial website Creditchoices.co.uk.

A further 38.8% felt that they would be about the same in six months time.

Sentiment has grown more positive since the summer as house prices have been going up consistently. House prices were up 0.5% in November and 2.7% annually, according to Nationwide, the UK's biggest building society.

Chris Eagle, commercial manager at Creditchoices.co.uk, said: "It's easy to see why over 90% of our users believe house prices will stay the same or rise. House prices have been rising steadily - although we are seeing a slight Christmas slow down at the moment.

"At the same time, mortgage providers are softening their deposit requirements slightly and trimming mortgage rates."

Not surprisingly, then, 72% of Brits also believe that now is a good time for first-timer buyers to enter the property market.

However, almost 20% (19.7%) felt that it was a bad time to buy a house, and 8.3% didn't know.

Last week, Abbey introduced more attractive mortgage deals for people with a 10-20% deposit. And mortgage broker, Mortgageforce, reported that 85% loan-to-value mortgages bounced back in November, too.

Creditchoices.co.uk's Eagle added: "This combination of circumstances means that first-time buyers are once more able to look at the market with some expectation of completing a deal.

"At the same time, many current home owners who have been putting off buying and/or selling have taken the plunge, and deals are being completed." (See case study)

Case study

'Buying a house was a smooth process for us'

Creditchoices.co.uk user Phill Dunn and his partner Elaine found their ideal three-bedroom semi in a pretty Northamptonshire village in September. And they consider themselves lucky to be in in time for Christmas.

Phill, 38 a security manager in logistics, says: "It's all been very smooth. We applied for a mortgage the day after we found the property and got our provisional approval two weeks later. We settled on fixed-rate mortgage deal from Alliance & Leicester.

"The only problem was that we were originally told we could get a 90% mortgage, but we were only formally approved for an 85% mortgage. We had to do some juggling so we weren't short on the deposit."

Although Phill was forced to sell his former property and move due to job relocation, he feels that buying now has been a good thing.

"I think house prices will stay steady for a while but we won't lose out - house prices will eventually start to move up again. We certainly won't make massive amounts, but it's all relative anyway - as the whole market will move up."

Notes to editors:

The Creditchoices.co.uk Mortgage Survey was carried out between 1 September and 30 September 2009. It had 1040 respondents.

Below are the full results for each question.

1
Where do you think property prices will be in six months, compared to today?
Answer Options / Response Percent / Response Count
20% higher / 1.6% / 17
10% higher / 12.2% / 127
5% higher / 37.8% / 393
About the same / 38.8% / 404
5% lower / 5.8% / 60
10% lower / 2.9% / 30
20% lower / 0.9% / 9

2
Do you think now is a good time for first-time buyers to buy a property?
Answer Options / Response Percent / Response Count
Yes / 72.0% / 734
No / 19.7% / 201
Don't know / 8.3% / 85

For more information contact Chris Eagle at Creditchoices.co.uk on 0207 700 3245 or email chris(at)consumerchoices(dot)co(dot)uk

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