Propertyfinder.com’s August index has found that 83 per cent of home buyers and sellers currently expect house prices to rise over the next twelve months, by an average of 5 per cent.
This would equate to around half of the rate of house price inflation of the last 12 months.
Despite expectations of a slowdown, the research indicates a positive long term outlook for the housing market as a lack of supply continues to buoy prices. 46 per cent of people attribute house price rises to a lack of homes coming onto the market, and a further 39 per cent say that a lack of new homes being built is pushing up prices.
The MPC minutes published today agree that the housing market is experiencing a gentle slowing and is reacting to their medicine.
Propertyfinder.com chief executive Warren Bright says: ‘The housing market remains resilient although interest rates have had a cooling effect on price growth and the full impact is yet to feed through into data. Changes in consumer attitudes are the first indicator of market conditions to come so we should expect house price inflation to continue to slow.
“Nevertheless, supply is chronically constrained with too few properties coming onto the market and far too few being built. Inevitably that will support prices over the longer term.’