Buyer confidence high in UK property market
Confidence in property markets in the UK and overseas remains high with many believing that now is a good time to buy because of stable or falling prices, a tracker survey reveals.
The latest report from the UK based Worldwide Property Group based on its March tracker survey covering price and interest rate expectations, general confidence, buying intentions, and views on property as an investment are positive.
It shows that 84% of respondents stated they believed right now to be a good time to buy a property in the UK. The last time the survey recorded such a high percentage was in November 2010.
Just 28% of those interviewed expect UK property values to fall over the coming year with an even split between those who expect prices to either increase or remain static.
On the subject of interest rates, 85% expect the base rate to rise at some point over the next 12 months. This is a substantially lower figure than last month’s 96% and actually represents the lowest figure in four months, the report says.
It also found that 65% said that they were still benefiting from the current low level of interest rates with 58% saying this had increased their desire to buy a property.
Looking further afield, 56% are of the opinion that an overseas property purchase represents good value in the current market with the United States still the most popular country in which to buy. Greece, Turkey, Spain and Portugal also ranked highly, and China was mentioned for the first time in the history of the survey.
Three in every four people surveyed believe property offers the best investment potential of any major investment. Gold was in second place with 13% of the vote and shares received just 7%. Currency and savings received 4% and 2% respectively.
‘It is interesting to see a drop in the number of respondents who are anticipating an increase in interest rates. Given the positive CPI inflation report earlier this month, I expect next month we’ll see a further decline in those people expecting a rate rise,’ said Kevin Wilkes, managing director of the Worldwide Property Group.